European luxury car manufacturers, including Porsche and Aston Martin, have raised the prices of their models in the U.S., which may now pave the way for other larger brands to follow the same strategy to cope with the tariffs imposed by President Donald Trump.
It is worth noting that the U.S. and the European Union (EU) reached a trade agreement that will impose a 15% tariff on cars manufactured in the EU starting in August, lower than the initially projected rate, but well above the 2.5% rate applied by the U.S. before Trump launched his trade offensive following his arrival at the White House earlier in the year.
This Wednesday, Porsche announced a price increase in the U.S. ranging from 2.3% to 3.6%, with no plans, for now, to produce its models in the U.S., a move that would allow the brand to avoid tariffs on imported cars.
“This is not a storm that will pass”, said Oliver Blume, CEO of Porsche, after the company lowered its annual profit target and signaled a loss of $462 million in tariffs in the first half. “We continue to face significant challenges worldwide.”
