On Wednesday, Mercedes-Benz announced that its profits from selling cars have fallen in the first few months of this year. The company said it is worried about how tariffs—taxes on imports and exports—could hurt its profits for the whole year.
The luxury carmaker’s profit margin from its car section dropped to 7.3%, down from 9% during the same time last year. Overall group profits before paying interest and taxes fell by a huge 41% compared to last year, landing at 2.3 billion euros (about $2.62 billion) in the first three months of 2025.
Mercedes-Benz explained that the situation around tariffs is very confusing right now. Because of this, it is difficult for them to predict how their business will do for the rest of the year. The changing and unpredictable tariff rules set by former President Donald Trump add extra pressure on European car companies, which are also facing tough competition from China and high expenses in Europe.
If these trade rules stay the same, Mercedes believes that its profit margins for cars and vans will be affected negatively.
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