Driving the news: Three luxury automakers reported a combined $889 million hit from U.S. tariffs, with Porsche taking a $462 million blow in the first half and Mercedes-Benz warning of $428 million in second-quarter costs alone, reports CNBC.
For context: Aston Martin also issued a profit warning citing tariff impacts and weak Chinese demand, calling the "evolving and disruptive U.S. tariff situation" unhelpful to operations.
Trump raised tariffs to 27.5% on EU auto imports in April, though the new U.S.-EU trade framework announced Sunday will cut that to 15%.
Why it matters: The combined losses show how Trump's trade war is hammering Europe's most profitable car brands, forcing them to absorb huge costs or pass them to consumers. Porsche Chairman Oliver Blume warned "this is not a storm that will pass.”
What we're watching: Whether the new 15% tariff rate under the U.S.-EU framework provides meaningful relief or if luxury brands will need to fundamentally restructure their U.S. operations.
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