Porsche, Aston Martin Hike U.S. Prices as 15% Tariffs Hit European Cars

European luxury carmakers, including Porsche and Aston Martin (LON:AML), have raised U.S. prices following new 15% tariffs on EU-made cars, signaling similar moves from larger brands. The tariff, effective in August, is part of a U.S.-EU trade deal that sharply increases the previous 2.5% rate set before President Donald Trump’s trade offensive.

Porsche, part of Volkswagen (ETR:VOWG_p), increased U.S. prices by 2.3% to 3.6% in July and has no plans to establish U.S. production to avoid the levies. CEO Oliver Blume warned of continued challenges as the company cut its annual profit outlook and reported a $462 million hit from tariffs in the first half of the year.

The tariffs have impacted global automakers, forcing companies like GM, Hyundai (OTC:HYMTF), Mercedes-Benz (OTC:MBGAF), and Volkswagen to absorb billions in losses, issue profit warnings, and raise prices. Ford (NYSE:F) reported an $800 million tariff-related hit in Q2, while Nissan (OTC:NSANY) posted a $535 million loss tied to U.S. tariffs and weak sales.

Aston Martin confirmed incremental U.S. price hikes and issued a profit warning amid prolonged weak Asian demand. Analysts expect other premium carmakers, including Mercedes, to consider similar price adjustments in the second half of the year.

Industry leaders, including Mercedes CEO Ola Kaellenius, said companies are resigned to the 15% rate, with little chance of sector-specific exemptions. Volkswagen previously sought tariff relief via investment commitments but now views a separate automotive deal as unlikely.

The new tariffs mark one of the steepest trade measures against European automakers, forcing luxury brands to pass costs to U.S. consumers as the global auto industry braces for ongoing trade tensions.