Aston Martin Pulls Back on US Exports Amid Tariff Uncertainty
Aston Martin Lagonda has scaled back exports to the United States as it weighs the potential effects of Donald Trump’s evolving tariff policies on luxury vehicle demand.
The British luxury carmaker, renowned for models such as the DB12, Vantage, and the high-performance DBX707 SUV, revealed it is “carefully monitoring the evolving US tariff situation” while opting to limit exports for the time being. Instead, it is relying on existing inventories held by its American dealer network.
The move comes amid growing uncertainty over the US government’s trade stance, particularly regarding car import duties. Such unpredictability has begun to affect global premium marques, particularly those like Aston Martin that rely heavily on overseas sales. Tariffs have been a central theme of Trump’s economic strategy, and concerns have resurfaced as the former President, now the presumptive Republican nominee for the 2024 election, has pledged to reintroduce sweeping trade levies if elected. Analysts warn that tariffs of up to 10% on all imports could be reimplemented in such a scenario — a threat hanging over international manufacturers like Aston Martin. (Source: The Financial Times)
While tariffs may have a limited practical impact on Aston Martin’s affluent customer base – many of whom have the means to absorb price hikes – the company acknowledged that the broader uncertainty could dampen demand. Prospective buyers may hesitate until pricing stability returns, the company said, especially if a shift in trade policy sees vehicles caught up in retaliatory measures from trading partners.
The US remains a core region for Aston Martin, accounting for roughly one-third of its sales globally, with the majority in the United States. Amid this uncertainty, performance guidance has been revised, with the company now forecasting only modest growth in wholesale vehicle volumes by the end of the year. This marks a downgrade from initial expectations of a mid-single-digit percentage increase.
Despite these geopolitical headwinds, Aston Martin reported a narrowing of pre-tax losses to £79 million in the first quarter, down from £142 million a year prior. While operating losses edged higher to £67 million, the firm flagged an improvement in financial discipline and reduced cash burn as positive developments. Free cash outflow fell to £120 million, a marked improvement on the £190 million recorded in the same quarter of 2023.
Revenues, however, declined by 13 per cent to £233 million, largely due to a drop in sales of high-margin bespoke vehicles, often referred to as “specials”, which typically command premium prices and generate stronger profitability. Average sales prices did increase 10 per cent to £193,000 per vehicle, signalling the continued strength of Aston Martin’s pricing power. Vehicle deliveries inched up to 950 for the quarter, compared with 945 during the same period last year.
The firm’s gross margin, however, suffered. Profit margins fell close to 10 percentage points to 27.9 per cent, underscoring the impact of shifting product mix and lower “special” sales — a key segment targeted at ultra-high net-worth individuals.
Concerns surrounding Aston Martin’s balance sheet persist. Net debt soared to a record £1.26 billion, exacerbated by a near one-third slide in available cash reserves since January. The company’s liquidity position remains under intense scrutiny from investors and credit analysts, as it continues to work through a longer-term plan to restore financial stability. Credit rating agency S&P Global recently maintained its negative outlook on the group’s debt over worries related to liquidity and strategic execution. (Source: S&P Global Ratings)
Shares in Aston Martin, which have endured a challenging few months following a capital raise and lowered guidance, were relatively stable in mid-week trading, dipping slightly to 69.85p in early London market activity.
Despite the cautious short-term outlook, the firm remains optimistic about the months ahead. Management forecast “sequential improvement” in the second quarter of 2024, buoyed by the expected commercial ramp-up of newly refreshed models and stabilisation in key markets — although US trade policy remains a major variable.
The company’s recent launch of the DBX707, billed as the world’s most powerful luxury SUV, has been hailed as a potential sales catalyst. Production of the model is centred at Aston Martin’s St Athan facility in South Wales, where the firm recently confirmed plans to create over 100 new jobs in response to growing demand. (Source: BBC News)
As automotive manufacturers continue to navigate geopolitical and economic turbulence, Aston Martin’s next steps — particularly its US strategy — will be closely watched by analysts and investors alike. The current environment underlines the vulnerability of even premium brands to political crosswinds far beyond the factory floor.
Read more: Aston Martin limits US exports as Trump tariffs cloud outlook and losses narrow via Business Matters.
