Aston Martin in profit warning amid US tariff woes

Aston Martin warns of losses amid US tariffs

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The firm released a statement on Monday saying it had launched an immediate review into costs

Aston Martin Lagonda has warned of further losses as it faces US tariffs, and also raised fears over supply chain pressures from Jaguar Land Rover’s cyber-attack fallout.

The Warwickshire luxury carmaker said it was now braced for underlying losses greater than £110m, which was the bottom of the previous expected range.

The announcement marks the second downgrade to its outlook since early July.

Aston Martin bosses said they had launched an “immediate” review of costs and spending in light of tougher trading.

It sent shares tumbling by as much as 11% at one point during trading on Monday.

The firm said wholesale volumes were set to drop by a mid-high single-digit percentage due to “heightened challenges in the global macroeconomic environment, including the ongoing impact of tariffs” – with a weaker performance being seen across North America and Asia.

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Aston Martin hopes its Valhalla model will revive its fortunes

In a statement on Monday, the firm said: “The global macroeconomic environment facing the industry remains challenging.

“This includes uncertainties over the economic impact from US tariffs and the implementation of the quota mechanism, changes to China’s ultra-luxury car taxes and the increased potential for supply chain pressures, particularly following the recent cyber incident at a major UK automotive manufacturer.”

Tariff quotas

The group has seen shares come under pressure this year over concerns about the impact of Donald Trump’s tariff war.

The firm limited shipments to the US in the second quarter after the president imposed a 25% tariff on car imports in April.

It then resumed shipments in June as the UK reached an agreement with the US for a lower 10% tariff on UK-made cars for the first 100,000 vehicles per manufacturer.

Anything above that threshold will be hit with a 27.5% duty.

But Aston Martin said the tariffs were still having an impact on performance.

It said: “For UK automotive manufacturers, the introduction of a US tariff quota mechanism adds a further degree of complexity and limits the group’s ability to accurately forecast for this financial year end and, potentially, quarterly from 2026 onwards.

“The group continues to engage with both the US and UK governments to secure greater clarity and certainty.”

Aston Martin said while “positive dialogue” had been achieved with the US government directly, the firm was still seeking proactive support from the UK.

It hopes that profitability and free cash flow will “materially” improve in 2025-26 as it cuts costs and ramps up delayed production of its Valhalla model – the group’s first plug-in hybrid mid-engine supercar.

In February, before tariffs were announced, Aston Martin cut 170 jobs after seeing losses widen by a fifth last year and debts pile up.

Its results for the first half of 2025 showed core profitability (EBIT) slumped to £121m, compared with £99.8m in the same period of 2024.

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