Aston Martin Wants UK To Tweak Trump Trade Deal After Cutting 2025 Targets On 'Disruptive' Auto Tariffs

Aston Martin shares slid more than 3% in London on Wednesday after the British luxury carmaker cut its 2025 profit outlook, blaming "evolving and disruptive" U.S. auto tariffs.

Under a U.S.-UK trade deal implemented in May, the first 100,000 UK car imports are subject to a 10% tariff, while any shipments exceeding that threshold are subject to a 27.5% duty. Aston Martin stated that the quota system is hindering its ability to forecast results and could impact margins into 2026.

"We continue to actively engage the UK government to urge them to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10% rate on an ongoing basis," CEO Adrian Hallmark said in a statement.

The company now expects its gross margin this year to be broadly in line with last year's 37%, which is below its prior target of 40%. Adjusted earnings before interest and tax (EBIT) may no longer turn positive in 2025, instead moving toward breakeven.

For the latest quarter, Aston Martin posted an adjusted operating loss of £57 million ($76.16 million) versus a £42.7 million loss a year ago. Revenue fell 34% to £220.5 million, below the consensus of £270 million. Wholesale volumes dropped 8% to 972 units, while retail deliveries outpaced wholesales by over 40%.

The broader UK auto industry is also reeling, with output reportedly at its lowest level since 1949, as exports have paused amid Trump's tariffs. 

Aston Martin’s London-listed shares are down 26% year-to-date, while its over-the-counter stock in the U.S. has fallen nearly 14%.

On Stocktwits, retail sentiment toward Aston Martin remains 'bearish' amid 'high' message volume late Tuesday.

(£1 = $1.34)

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