Aston Martin shares rally on UK and US trade deal
Shares in Aston Martin surged on Thursday ahead of President Donald Trump announcing a trade deal with the UK.
The FTSE 250 stock was up ten per cent in the early afternoon, after reports that US car tariffs on the UK would ease.
Trump’s 25 per cent levy on all steel and car imports dealt a major blow to the automaker industry in April.
Aston Martin slashed its US car exports at the end of April in response to the tariff uncertainty.
But the President announced a marginal scale down, reducing the automaker levies to ten per cent on 100,000 cars.
Aston Martin made further gains on the back of the news and closed up nearly 13 per cent.
Tariffs were a blow to Aston Martin stock
Aston Martin shares traded at a high of 119p before the White House ramped up on its trade agenda.
The stock nosedived to a low 59.9p in the fallout of Trump’s ‘Liberation Day,’ which handed sweeping levies across all of the US trading partners.
Whilst other firms clawed back gains after Trump’s tariff retreat, Aston Martin has remained stuck in a rut, closing at 70p on Wednesday.
Cyril Aboujaoude, co-founder of private equity firm Tioopo Capital, said: “This deal has the potential to mark a positive shift in UK-US industrial trade, but its long-term value will depend on more than short-term quota relief.
“Long-term visibility is essential – not just for the major automotive manufacturers, but for the mid-sized, high-spec engineering firms that represent the future of UK innovation. These companies are crucial to advancing electric vehicles, lightweight materials, and performance technologies – and their success will help define the UK’s role as a global automotive leader.”
Defensive stocks were also rallying after the news of a trade deal.
Rolls-Royce was up nearly four per cent and Melrose over five per cent.