Mercedes-Benz shares fell slightly on Wednesday morning after the automaker retracted its all-year outlook and announced a decline in earnings.
Stuttgart-based firm's shares at CEST noon as investors fear the impact of U.S.-imposed trade barriers %He fell more than 1’.
In a press release from Mercedes-Benz, “ said that the U.S. tariff policy, as well as countermeasures by other governments, and accordingly changes in tariff rates, are leading to significant uncertainty for the world economy.
The automaker said it was too early to assess the full consequences of ’'s trade policies, especially given the uncertainty around tariff measures.
Mercedes currently manufactures cars in a number of different locations with a strong presence in ’, Germany. The automaker has a plant in Tuscaloosa, Alabama’, and earlier this month said it could increase production in the US’ in response to tariffs.
The automaker said on Wednesday that Mercedes’'s pre-interest and pre-tax earnings are expected to increase annually in the first quarter of 2025. %It announced a decline of 41 to 2.3 billion Euro’.
The Net Profit %Revenue decreased by 43 to 1.7 billion Euro’ %7 declined to 33.2 billion Euro’.
Adjusted operating margin in the Mercedes’in car division decreased by 1.7 points %7.3’e is down.
Trump’tan concession to automakers
The car brand's tariff warnings came after the U.S. administration offered a glimmer of hope to the auto industry on Tuesday.
President Trump has signed a presidential order to reimburse some taxes imposed on auto parts shipped to the U.S. ’.
Moreover, businesses that pay taxes on cars and parts will not have to pay the additional taxes that Trump’ imposes on steel, aluminum and goods from Canada and Mexico ’.
For foreign cars sent to the USA’ %Tariffs of 25’ come into effect earlier this month, while taxes on foreign auto parts will begin on Saturday.
Other automakers that have sounded the alarm about tariffs include Stellantis, Volvo and General Motors, which have retracted their estimates in response to Trump’'s trade war.
Volkswagen's first quarter earnings on Wednesday %It reported 37 decreases to 2.9 billion Euro’. VW has maintained its appearance all year.
