Mercedes-Benz Group AG officially denied a Bloomberg report that it was considering withdrawing its cheapest models from the US market due to the tariffs.
“This is without any merit. Mercedes-Benz continues to seek sales growth for its highly desirable vehicles,” a Mercedes-Benz spokesperson said in an emailed statement on Tuesday.
However, the company has been quietly preparing for the tariffs’ impact. In an investor call on Monday, Mercedes executives revealed they were building up inventory levels at US dealerships and wholesalers to get ahead of the April 3 implementation date.
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During the call, the automaker acknowledged the planned 25% tariff would likely impact its margins by approximately 2.5 percentage points before any mitigation measures.
According to industry sources, manufacturers are carefully evaluating potential price adjustments while keeping their strategies confidential, concerned that public announcements could draw unwanted attention from the White House, which has been pushing for increased domestic production.
Related: Musk Says Trump’s Auto Tariffs Will Hurt Tesla
Industry experts have warned that the tariffs could lead to higher prices and fewer model choices for US consumers, with limited room in profit margins for more affordable luxury vehicles to absorb the 25% cost increase.
Mercedes-Benz Cars and Vans sold 374,000 vehicles in the US in 2024, accounting for 15.6% of its global sales, underscoring the importance of the American market to the German manufacturer.
Other European luxury brands including Aston Martin, Ferrari, and Volkswagen face similar challenges with analysts projecting billions in potential financial impact across the sector.
The White House maintains that the tariffs will strengthen domestic manufacturing and create American jobs.
Information for this story was found via Bloomberg, Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
