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Aston Martin is the latest carmaker to be hit by the wave of disruption caused by Trump’s car tariffs.
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The luxury British carmaker said it was limiting imports to the US due to the tariffs.
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Aston Martin also warned it may have to pass on some of the tariff cost to buyers of its $250,000-plus supercars.
Aston Martin is limiting imports of its luxury vehicles to the US as the car industry grapples with disruption caused by Trump’s tariffs.
The company said the tariffs had created a “high degree of uncertainty,” with executives saying Aston Martin will likely have to pass on some of the impact to buyers of its $250,000-plus supercars and SUVs.
“We are carefully monitoring the evolving US tariff situation and are currently limiting imports to the US while leveraging the stock held by our US dealers,” wrote CEO Adrian Hallmark in the company’s first quarter earnings report.
In a call with reporters and analysts, Aston Martin executives said the company had enough stock at its US dealers to last through to early June.
After that, Hallmark said Aston Martin was looking at a number of ways it could offset the impact of the 25% tariff on imported cars, including price changes.
He added that Aston Martin had pricing scenarios “on standby.” He said the company would not pass on the full impact of the tariffs to customers but would not absorb it entirely either, describing it as a “mixed” approach.
The auto industry is facing a wave of uncertainty fuelled by the tariffs introduced on imported vehicles and car parts by the Trump administration in April.
Stellantis and Mercedes became the latest companies to withdraw their full-year guidance due to tariff uncertainty on Wednesday, while Volkswagen warned the brewing trade war could hit sales this year.
The uncertainty is magnified for luxury car manufacturers, many of which have no factories in the US where they can shift production.
British automaker Jaguar Land Rover paused shipments to the US this month, while German brand Audi reportedly began holding its cars at US ports earlier in April.
Analysts previously told Business Insider that luxury carmakers were more likely to hike prices in the US in response to the tariffs, as their high-end customers are generally more willing to accept price rises.
Ferrari announced last month it would raise sticker prices by as much as 10%, adding tens of thousands of dollars to the cost of many of its supercars.
Aston Martin sells several ultra-luxury SUVs and supercars in the US, ranging from the $250,000 Vantage coupe to the $523,000 Vanquish.
Read the original article on Business Insider
