Mercedes-Benz has withdrawn its 2025 earnings guidance, citing rising uncertainty around new U.S. auto import tariffs enforced by the Trump administration. The decision comes as the German automaker reported a 41% drop in first-quarter earnings.
The announcement, made on Wednesday, comes as the company navigates a volatile business environment impacted by shifting trade policies, heightened competition in China, and stricter CO2 emissions regulations in the European Union. Mercedes-Benz joins a growing list of global automakers—including Stellantis and Volvo Cars—that have suspended forward-looking forecasts due to similar market uncertainty.
To brace for potential tariff impacts, Mercedes confirmed it has been stockpiling inventory in the U.S. since late March. Despite this move, the automaker experienced a 7% decline in global car and van sales during Q1. European and Chinese sales were especially hard hit, falling 10% in each region. However, the U.S. market showed modest resilience, with a 1% year-over-year sales increase.
The company’s car division posted a 7.3% profit margin in the first quarter, down from 9% in the same period last year. Total group earnings before interest and taxes dropped to $2.62 billion, a significant year-over-year decrease.
This earnings pressure is most pronounced in China, Mercedes’ largest market, where its full-year sales dropped 7% in 2023 and continued to fall in Q1 2024. In an effort to recapture lost market share, the company recently unveiled its Vision V, an all-electric luxury limousine series, at the Shanghai Auto Show, targeting China’s premium EV segment.
