Michelle ThompsonCarmakers Stellantis and Mercedes have pulled their annual financial forecasts due to the effects of the trade conflict.
Aston Martin, the British sportscar manufacturer, is reducing its exports to the US due to Donald Trump’s tariffs, while Stellantis and Mercedes have withdrawn their financial forecasts for the year, citing uncertainty over US import levy changes.
Aston Martin, famous for the cars featured in James Bond films, stated that it is “currently limiting imports to the US while utilizing the stock held by our US dealers.”
The US is a crucial market for the carmaker, contributing around a third of its £1.6bn revenue for 2024. Aston Martin said it is “carefully monitoring the evolving US tariff situation” and will “adapt to changes in the operating environment as they occur.” Along with Stellantis and Mercedes, the company is impacted by Trump’s significant tariffs, which threaten to disrupt the global car market and supply chains.
On April 3, the US administration imposed a 25% tariff on all car imports as part of a broader trade strategy aimed at bringing auto production back to the US.
However, Trump announced on Tuesday plans to ease the tariffs, scaling back some of the duties on foreign cars and parts to provide relief to US manufacturers. This shift follows warnings from the domestic auto industry that his approach would raise costs for American producers by tens of billions of dollars.
Under the new changes, cars subject to the 25% tariff will no longer face additional duties on steel and aluminium, and US automakers will be able to apply for temporary tariff exemptions for some imported parts costs.
Stellantis, which manufactures Jeep, Fiat, Vauxhall, and Peugeot cars, announced on Wednesday that it was suspending its 2025 financial forecast due to uncertainties around US tariff policies.
The company, which saw a drop in profits in 2024, reported a 9% decrease in car shipments in the first quarter, down to 1.22 million units compared to the previous year, along with a decline in net sales. Mercedes-Benz Group, the German carmaker, also withdrew its financial outlook for the current year, citing the uncertainty surrounding Trump’s tariffs.
Mercedes, which produces some vehicles in the US and ships European-made cars to North America, noted “considerable uncertainty for the world economy” due to the US tariff policy and retaliatory actions from other governments, making it difficult to provide future guidance.
Mercedes stated that the volatility surrounding tariffs was “too high to reliably assess” business performance this year, adding that its operating profit, cash flow, and margins could all be impacted if the US tariffs remain in place.
