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Mercedes hit by $1.2 billion in tariff costs as full-year earnings more than halve
Mercedes-Benz’s 2025 operating profit dropped 57% to €5.8 billion, hit by €1 billion tariffs and fierce Chinese competition, with plans for cost cuts and new products in 2026.
- On Thursday, German luxury carmaker Mercedes-Benz Group reported full-year 2025 operating profit of 5.8 billion euros, a 57% decline from a year earlier.
- A reported 1 billion euro hit from tariffs introduced by US President Donald Trump, foreign-exchange headwinds and competition in China shaped Mercedes' earnings.
- After pulling margin guidance in April, Mercedes reported a full-year earnings of 5.8 billion euros, impacted by a reported 1 billion euro hit from tariffs, with revenue of $1.2 billion and a 5% return on sales.
- Investor reaction included a sharp share drop, and management outlined margin-restoration plans as shares of the Munich-listed company fell 5.3% and Mercedes announced cost cuts in 2026 plus product launches aimed at an 8%–10% autos margin.
- Within the broader market, Mercedes's results reflect sector-wide strains as the European earnings season shows weakness amid a strong euro and uneven demand for autos across markets.
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72 Articles
72 Articles
From industrial engine to oroszon. Europe's car giants warn of profits, lose money in China and are challenged by cheaper electric cars from the East. What is at stake is bigger than individual companies – it concerns Europe's economic backbone.
·Stockholm, Sweden
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German automaker Mercedes-Benz said its net profit for 2025 was 5.3 billion euros, nearly 49 percent less than in 2024.
·Estonia
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The accounts of 2025 of the Stuttgart group. The cost reduction does not offset the effect of customs duties, exchange rates and Chinese competition.
·Italy
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Total News Sources72
Leaning Left5Leaning Right12Center14Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 16%
C 45%
R 39%
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