Close Menu
Influential MagazineInfluential Magazine
  • Home
  • Latest News
  • Entrepreneurs
  • Business
  • Finance
  • Leadership
  • More
    • Web Stories
    • Editor’s Picks
    • Press Release

Subscribe to Updates

Get the latest business and finance news for entrepreneurs all around the world.

What's Hot
Indian Culinary Giant Bikanervala Launches £50M UK Rollout in Hounslow

Indian Culinary Giant Bikanervala Launches £50M UK Rollout in Hounslow

July 4, 2025
16 Mayors on What It’s Like to Run a U.S. City Now Under Trump

16 Mayors on What It’s Like to Run a U.S. City Now Under Trump

July 3, 2025
See How Trump’s Big Bill Could Affect Your Taxes, Health Care and Other Finances

See How Trump’s Big Bill Could Affect Your Taxes, Health Care and Other Finances

July 3, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Influential MagazineInfluential Magazine
SUBSCRIBE
  • Home
  • Latest News
  • Entrepreneurs
  • Business
  • Finance
  • Leadership
  • More
    • Web Stories
    • Editor’s Picks
    • Press Release
Influential MagazineInfluential Magazine
Home » Mercedes-Benz and Volkswagen Facing Uncertainty With Tariffs

Mercedes-Benz and Volkswagen Facing Uncertainty With Tariffs

April 30, 20254 Mins Read Business
Mercedes-Benz and Volkswagen Facing Uncertainty With Tariffs
Share
Facebook Twitter Reddit Telegram Pinterest Email

European carmakers, including Mercedes-Benz, Stellantis and Volkswagen, said Wednesday that the chaos and upheaval caused by the tariffs introduced by President Trump had left them struggling to assess the impact and unable to plan for the future.

After years of sluggish demand and high inflation, Europe’s carmakers headed into 2025 with a raft of new battery-powered models and high hopes that they would lure back customers.

Instead, they are faced with global uncertainty surrounding supply chains and customer demand, set off by Mr. Trump’s decision to impose 25 percent tariffs on all cars, steel and aluminum coming into the United States.

On Wednesday, Mercedes-Benz suspended its financial forecasts for 2025, as did Stellantis, which includes Fiat, Peugeot and Opel among its brands in Europe, and Chrysler, Dodge and Jeep in the United States.

“The current volatility with regard to tariff policies, mitigation measures and resulting potential direct and indirect effects in particular on customer behavior and demand is too high to reliably assess the business development for the remainder of the year,” Mercedes-Benz said in a statement on Wednesday.

Stellantis cited “the evolution of customs tariffs, as well as the difficulty in predicting their potential impacts on the market and the competitive landscape” for its decision.

Volkswagen Group, the largest automaker in Europe, decided not to scrap its outlook for 2025, but instead scaled back its profit expectations to the lower end of its forecast, to between 5 and 6 percent. The company, which owns Audi, Porsche and the Volkswagen brand, cautioned that the initial calculations had been made before the tariffs were introduced in early April.

All three companies have factories in the United States. Mr. Trump on Tuesday announced changes to the tariffs in what he called “a little flexibility” toward automakers that produce cars in the United States and are concerned about the damage the import taxes will do to their business.

Under the latest version, carmakers that pay a 25 percent tariff on auto imports are not subject to other levies, like, for example, on steel and aluminum, or on certain imports from Canada and Mexico. However, the rules do not appear to protect automakers from tariffs on steel and aluminum that their suppliers pay and may pass on.

The leading group representing German automakers welcomed the move by Mr. Trump, but called it “a small step” that only slightly eases the burden caused by the tariffs.

German carmakers operating in the United States have been caught off guard by the imposition of import taxes on parts and vehicles coming in from Canada and Mexico, where many set up operations after Mr. Trump reworked the free-trade agreement with those countries during his first term in office.

“Companies urgently need more clarity in order to be able to assess the exact impact and implement the measures with legal certainty,” said Hildegard Müller, the president of the German Association of the Automotive Industry.

Porsche has been among the German brands hardest hit by the tariffs. It relies on the U.S. market for 40 percent of its sales, but manufactures its sports cars exclusively in Germany, leaving it heavily exposed to the duties.

The sports car maker’s dismal performance in the first three months of the year dragged down its parent company, Volkswagen Group, which said Wednesday that its earnings dropped more than 40 percent in the first quarter.

Even before Mr. Trump introduced tariffs, Volkswagen’s key brands were struggling against high costs and overcapacity at its plants in Germany, as well as increased pressure from Chinese competitors that are flooding the European market despite an increase in import taxes passed by the European Union last year.

Volkswagen makes cars including the electric ID.4, at a factory in Chattanooga, Tenn., and is building a factory in South Carolina to produce off-road vehicles under the Scout brand. Audi produces cars in Europe and Mexico, as well as Europe, but not in the United States. Oliver Blume, Volkswagen’s chief executive, has said that the company is considering shifting manufacturing of another one of its models to Chattanooga to avoid tariffs.

German media has reported that Mr. Blume and his counterparts at Mercedes-Benz and BMW met with Mr. Trump in an effort to work out a deal. German automakers and their suppliers employ some 138,000 people in the United States, according to the German industry trade group.

The tariffs are causing other European carmakers to rethink their strategy in the United States. The British automaker Aston Martin said Wednesday that it was holding back on imports to the United States because of the tariffs. Instead, the company plans to use up existing inventory that has already been shipped, the company’s chief executive said in a statement. Jaguar Land Rover has also said that it is pausing shipments to the United States.

Aston Martin Audi Division of Volkswagen AG Automobiles Customs (Tariff) International Trade and World Market Porsche AG United States Politics and Government Volkswagen AG
Share. Facebook Twitter Pinterest LinkedIn Telegram Reddit Email
Previous ArticleUnder Trump, Stocks Have the Worst Start to a Presidential Term Since 1974
Next Article Most Prosthetics Blend In. Her ‘Fun’ Eyes Stand Out.

Related Posts

16 Mayors on What It’s Like to Run a U.S. City Now Under Trump

16 Mayors on What It’s Like to Run a U.S. City Now Under Trump

July 3, 2025
See How Trump’s Big Bill Could Affect Your Taxes, Health Care and Other Finances

See How Trump’s Big Bill Could Affect Your Taxes, Health Care and Other Finances

July 3, 2025
How Health Care Remade the U.S. Economy

How Health Care Remade the U.S. Economy

July 3, 2025
What We Know (and Can’t Know) About Trump’s Wealth

What We Know (and Can’t Know) About Trump’s Wealth

July 2, 2025
There’s a Race to Power the Future. China Is Pulling Away.

There’s a Race to Power the Future. China Is Pulling Away.

June 30, 2025
A.I. Videos Have Never Been Better. Can You Tell What’s Real?

A.I. Videos Have Never Been Better. Can You Tell What’s Real?

June 29, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Don't Miss
Indian Culinary Giant Bikanervala Launches £50M UK Rollout in Hounslow

Indian Culinary Giant Bikanervala Launches £50M UK Rollout in Hounslow

By News RoomJuly 4, 2025

Bikanervala, the iconic Indian vegetarian brand loved across continents, has launched its much-anticipated UK operations…

16 Mayors on What It’s Like to Run a U.S. City Now Under Trump

16 Mayors on What It’s Like to Run a U.S. City Now Under Trump

July 3, 2025
See How Trump’s Big Bill Could Affect Your Taxes, Health Care and Other Finances

See How Trump’s Big Bill Could Affect Your Taxes, Health Care and Other Finances

July 3, 2025
How Health Care Remade the U.S. Economy

How Health Care Remade the U.S. Economy

July 3, 2025

Subscribe to Updates

Get the latest business and finance news for entrepreneurs all around the world.

About Us
About Us

Influential Magazine is one of the top news portals about Business and Finance news for Entrepreneurs and leaders all around the world, follow us for more intersting articles and news.

Our Picks
How Health Care Remade the U.S. Economy

How Health Care Remade the U.S. Economy

July 3, 2025
What We Know (and Can’t Know) About Trump’s Wealth

What We Know (and Can’t Know) About Trump’s Wealth

July 2, 2025
UK Betting Platform Headed by James Atkinson Reports Record £50 Million Profit

UK Betting Platform Headed by James Atkinson Reports Record £50 Million Profit

July 1, 2025
Trending Now
Mideast Conflict Imperils a Tiny Waterway Vital to the World Economy

Mideast Conflict Imperils a Tiny Waterway Vital to the World Economy

June 25, 2025
A.I. Computing Power Is Splitting the World Into Haves and Have-Nots

A.I. Computing Power Is Splitting the World Into Haves and Have-Nots

June 23, 2025
What Caused the Air India Plane Crash? Here’s What Investigators Are Examining.

What Caused the Air India Plane Crash? Here’s What Investigators Are Examining.

June 14, 2025
Influential Magazine
Facebook X (Twitter) Instagram LinkedIn
  • Home
  • Privacy Policy
  • Contact
  • Terms & Conditions
© 2025 Influential Mag. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.