Mercedes-Benz expects tariff-related headwinds to the profit margin at its core cars division to be less than 3% in the second quarter, brokerage Bernstein wrote in a note, following a regular investor call ahead of quarterly results.
This was due to “some de-escalation of tensions between the US and China, some tariff offsets and timing because tariffs were only ramping up in April”, the brokerage said following a call with Mercedes-Benz’s head of investor relations.
The investor call, which was closed to the press, was held before a closed period on company information before second-quarter results scheduled for July 30.
Mercedes-Benz in April pulled its earnings guidance for 2025 amid uncertainty over the impact of U.S. President Donald Trump’s tariffs on car imports.
The German carmaker’s finance chief at the time only said that if auto tariffs — implemented in April — remained in place all year, it would reduce profit margins by 300 basis points (3%) on cars and 100 basis points (1%) on vans.
Mercedes-Benz’s European car sales were said to be “robust”, and the U.S. saw continued solid momentum at the retail level, Bernstein said in the note.
Mercedes-Benz was not immediately available for comment.
