Aston Martin is whittling down stocks held by American dealerships while 25% tariffs on auto imports to the US remain in place.
Until now 30% of the luxury carmaker’s vehicles have gone to the US.
UK Chancellor has opened the door to cutting tariffs
The UK Chancellor, Rachel Reeves, is in formal talks with US Treasury secretary, Scott Besent and cutting UK tariffs on imports of US-made cars is on the table, along with levis on agricultural and seafood products.
Aston Martin minimised shipments to the US in April and will do the same in May. The company is said to have enough stock to last until mid-June, but will have to resume shipping late this month to maintain those levels.
Before the imposition of the tariffs Aston Martin used production in other countries to prioritise the US market.
Weak results
The company reported a loss of £64.5 million for the first quarter. It reported a loss of £57.1 million last year.
Aston Martin had planned to return to profitability this year, albeit the US tariffs were not factored into long-term forecasts prior to April 2, or “liberation day” as Trump labelled it.
Other car manufacturers are changing their guidance on expected profitability after the US imposed its tariffs.
Aston Martin is currently raising cash by selling its minority stake in the Formula One racing team. It has already said that it will pass on some of the tariff costs to customers by raising the price of vehicles.
‘Landing zone’
A briefing on the talks between Reeves and Besant said “both feel there is a landing zone for a trade deal but we’re not there yet. The discussion has become more intense, so that’s positive. Discussion will continue.”
