Friday, September 12, 2025

Latest

Mercedes-Benz Denies Exit Rumors as Auto Industry Braces for US Tariffs

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.

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.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Canada Is Nearly Last In Growth Among OECD Countries

Canada ranks near the bottom of OECD countries in real GDP per capita growth from...

Sunday, April 27, 2025, 07:47:00 AM

Trump’s Turbulence Pushes Global Funds Away From US Investment

Signs are emerging that global pension funds are losing confidence in the US, with some...

Tuesday, April 15, 2025, 09:47:00 AM

Japan Stands Firm on US Tariff Removal as Economy Feels Pinch

Japan is holding firm in demanding the complete removal of US tariffs as the two...

Wednesday, May 21, 2025, 10:26:00 AM

Tariffs Galore: Trump Threats 25% Levy On Auto, Pharma, Semiconductor

In our next episode on tariffs, President Donald Trump has declared his intention to impose...

Wednesday, February 19, 2025, 11:21:00 AM

Tariff-Ception: Trump’s Reciprocal Tariffs To Stage Compounded Global Trade Tension

President Donald Trump proposed Thursday to impose wide-ranging “reciprocal tariffs” on a host of trading...

Friday, February 14, 2025, 10:13:00 AM