Mercedes-Benz expects less than a 3% impact on Q2 profit margins at its core car divisions due to tariffs. The slight de-escalation of trade tensions between the U.S. and China, offsetting strategies by the automaker and the fact that tariffs only truly began ramping up in April minimized the full-quarter impact, according to brokerage firm Bernstein.
The update came from a closed investor call led by Mercedes-Benz’s head of investor relations. The call took place just before the company’s Q2 earnings blackout period. The second-quarter results are scheduled for release on July 30.
Mercedes-Benz withdrew its earnings guidance for 2025 in April due to the uncertainty surrounding the new U.S. tariffs introduced under the Trump administration. At the time, the company’s CFO estimated that if the tariffs remained in place for a whole year, they would reduce the profit margin by 3% on cars and 1% on vans.
As part of its strategy to mitigate the impact of tariffs, the company began stockpiling inventory in the U.S. at the end of March. Despite the trade policy uncertainty, Mercedes-Benz continues to experience steady sales in the U.S. auto retail market.
