Saturday, August 23, 2025

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

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Trump Announces $28B Subsidy For Farmers Affected By His Tariffs

Amidst the escalation of trade war jumpstarted by his tariffs, President Donald Trump has announced...

Wednesday, April 16, 2025, 11:29:00 AM

Trump Wages War With The World With Global Tariffs

President Donald Trump has imposed a sweeping set of tariffs that could fundamentally alter global...

Tuesday, April 1, 2025, 02:17:00 PM

EU Fires Back With €72B Tariff Counterpunch Affecting Boeing And Bourbon

The European Union has drawn up a €72 billion ($84 billion) list of US goods...

Tuesday, July 15, 2025, 02:13:00 PM

Krugman: Trump’s Tariff “Fantasy” Is Collapsing

Nobel Prize-winning economist Paul Krugman has issued a sharp warning that President Donald Trump’s tariff...

Monday, April 28, 2025, 12:55:00 PM

China Hits Back: Halts $40B Boeing Order, Restricts US Tech Firms

China has launched a sweeping and strategic retaliation against the US in response to long-standing...

Wednesday, April 16, 2025, 10:40:00 AM