Mercedes braces for billion-dollar hit from new US tariff plans
And that's assuming the tariff increases to just 10 percent, not 25, as Trump announced.
Mercedes-Benz would lose one percentage point of margin if tariffs on cars exported to the US from Europe were raised from the current 2.5 percent to 10 percent, Chief Financial Officer Harald Wilhelm told investors on February 20 during Capital Markets Day.
However, 10 percent is an optimistic scenario. A few days ago, Donald Trump threatened to impose a 25-percent tariff on goods imported into the US, including passenger cars. A detailed statement from the president on this matter will be issued at the beginning of April.
In 2024, Mercedes' passenger car division's adjusted earnings before interest and taxes (EBIT) were 9 billion USD, providing an 8.1 percent return on sales and revenues of 112 billion USD. If the return on sales were one percentage point lower, Mercedes would have lost approximately 1 billion USD.
However, Mercedes is aware that the losses could be more significant. Ten percent (in the context of tariffs) is the benchmark value, said the brand's director, Ola Kallenius. We are preparing for all kinds of scenarios.
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