Porsche Just Took A $462M Hit And The Fallout Is Coming For Your Pocket
It’s unlikely a seperate trade deal will be made between the US and European automakers
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- Porsche says President Donald Trump’s tariffs will hit its financials by $462 million this year.
- Sweeping 2.3 percent and 3.6 percent price hikes will be instituted across Porsche’s range.
- Aston Martin has also said it will increase prices by an average of 3 percent across its range.
The US and European Union may have just agreed to a long-awaited new trade deal headlined by 15 percent tariffs for European imports, but that doesn’t mean there will be any pricing reprieve for US shoppers. If you’re shopping for a new Porsche or Aston Martin, you’d be wise to call up your bank and ask for a bigger loan, as prices are rising.
Read: US And EU Reach Mega Trade Deal That Could Shake Up The Auto Industry
Porsche, for one, has confirmed it will be raising prices in response to the latest trade changes. As part of its financial report for the first half of 2025, the company said new US tariffs introduced under President Donald Trump will cost it around $462 million.
To help offset the impact, Porsche is planning to increase prices in the US by between 2.3 percent and 3.6 percent this month. The company also made clear it has no plans to shift production to the US in response.
Tariffs Prompt Strategy Shift
“This is not a storm that will pass,” Porsche boss Oliver Blume said. “The world is changing dramatically – and, above all, differently to what was expected just a few years ago.” He added, “in the US, import tariffs are also putting huge pressure on our business.”
With the new tariffs set to go into effect on August 1, Porsche has revised its outlook for the remainder of the year. It now anticipates revenue between €37 and €38 billion (around $42-$43 billion).
The company also expects a 5 percent group return on sales and a 3 percent margin for automotive net cash flow. Blume also told Reuters that, following the broader US-EU agreement, he no longer expects a separate automotive trade deal to emerge.
Aston Martin Takes a Similar Approach
Similarly, Aston Martin also made incremental price increases in the US last month, by an average of 3 percent across its range. This move came even as a separate agreement between the US and UK was reached, allowing up to 25,000 UK-built cars per quarter to qualify for a reduced 10 percent tariff, rather than the previous 27.5 percent rate.
On June 30, Aston Martin rushed to deliver three months’ worth of cars to US dealers within 24 hours as part of a mad scramble to qualify for lower tariffs and avoid reporting a significant quarterly sales slump.
According to The Guardian, the automaker invoiced the full shipment on that day and coordinated with delivery companies to move hundreds of cars from bonded, tariff-free warehouses into US dealerships. The goal was to ensure the vehicles qualified under the more favorable tariff structure and to prevent a significant dip in quarterly sales figures.
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