Aston Martin Rushes to Beat US Tariffs Deadline

Aston Martin rushed to deliver three months’ worth of cars to US dealers within 24 hours to qualify for lower tariffs that came into effect on 30 June. By invoicing all the cars on the same day, it avoided reporting a sales slump that could have worried investors.

The operation, though not as dramatic as James Bond films, was described as 'quite exciting' by Adrian Hallmark, Aston Martin’s CEO. The global trade war initiated by Donald Trump has impacted the car industry, with a 25% tariff imposed on top of an existing 2.5% levy.

Germany’s Mercedes-Benz and Porsche have faced significant financial hits due to the border taxes. However, a deal between the US president and Keir Starmer limited tariffs on British-made cars to 10%, effective from 30 June.

Aston Martin shipped most of its 328 cars to US dealers on the final day of the second financial quarter, facing a tight deadline to invoice all sales within 24 hours. The company raised prices by 3% for US customers to offset the impact of the tariffs.

The one-day scramble highlights the challenges posed by tariff uncertainties for exporters worldwide. Aston Martin strategically used bonded warehouses in the US to avoid higher tariff rates, ensuring a 10% rate for its cars.

Despite these efforts, Aston Martin remains cautious about the impact of tariffs, especially with the upcoming launch of its Valhalla hypercar. The company is concerned about the quota of 100,000 cars covered by the 10% tariff and the potential price increase if the quota is exceeded.

British carmakers may face a year-end rush to utilize the quota, leading to competition for limited slots. Hallmark expressed concerns about the pressure on the quota availability for British car exports to the US.

According to the source: The Guardian.