Mercedes braces for impact as Trump's tariff threat looms
And that's assuming the tariff increases to just 10 per cent, 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 2.5 per cent to 10 per cent, Chief Financial Officer Harald Wilhelm told investors on 20 February during Capital Markets Day.
However, 10 per cent is an optimistic scenario. A few days ago, Donald Trump threatened to impose a 25 per cent 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 about £7 billion, providing an 8.1 per cent return on sales. Revenues amounted to roughly £87 billion. If the return on sales had been one percentage point lower, Mercedes would have lost approximately £777 million.
However, Mercedes recognizes that the losses could be more substantial. The brand's director, Ola Källenius, noted that the benchmark figure for tariffs is 10 per cent and added that they are preparing for various possible scenarios.
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