Aston Martin to cut up to 20% of its workforce as tariff and China pain rocks automakers
Business Insider
February 25, 2026
AI-Generated Deep Dive Summary
Aston Martin is facing significant challenges as it announces plans to lay off nearly one-fifth of its workforce. The decision comes amid rising tensions over US tariffs and a sharp decline in luxury car sales in China. These factors have contributed to the company's £493 million loss for 2025, with revenue and vehicle sales both dropping.
The situation is driven by shifting trade policies under President Donald Trump, who introduced a 15% global tariff on US imports after a Supreme Court ruling. This added to existing tariffs imposed in April 2023, increasing export costs for Aston Martin's handcrafted supercars from its UK factory. While a May agreement provided some relief, the latest tariffs have created new uncertainties for British automakers.
Additionally, Aston Martin is experiencing a 21% drop in Asia-Pacific sales, primarily due to declining demand for Western luxury vehicles in China. Local brands, many producing electric vehicles, are gaining favor with Chinese consumers, further impacting the global market collapse in this segment.
The broader implications highlight the challenges faced by the auto industry in managing volatile trade policies and shifting consumer preferences. Major players like Toyota, GM, and Ford have also incurred significant costs adapting to these changes, underscoring the financial strain caused by fluctuating tariffs and
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Originally published on Business Insider on 2/25/2026