European Luxury Carmakers Raise US Prices After 15% Tariff Imposed

European luxury carmakers Porsche and Aston Martin have increased U.S. prices in response to a new trade deal imposing a 15% tariff on EU-made cars, a significant rise from the previous 2.5% rate before President Donald Trump's trade measures. Porsche raised prices by 2.3% to 3.6% in July and ruled out building U.S. factories to avoid tariffs, with CEO Oliver Blume warning that the tariff impact is a long-term challenge, resulting in a $462 million hit in the first half and a cut in profit targets. Aston Martin also made incremental price hikes and issued a profit warning citing tariff impacts and weak Asian demand. The tariffs have caused major losses and profit warnings across the industry, affecting companies such as GM, Volkswagen, Hyundai, Mercedes-Benz, and Nissan, which reported a $535 million quarterly loss. Analysts expect other premium carmakers, including Mercedes-Benz, to follow suit with price increases in the second half of the year. Despite hopes for sector-specific deals, executives like Mercedes-Benz CEO Ola Kaellenius see the 15% tariffs as likely to remain in place.