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Mercedes hit by $1.2 billion in tariff costs as full-year earnings more than halve
Mercedes-Benz's operating profit fell 57% to €5.8 billion in 2025, hit by €1 billion in tariffs and a 19% sales drop in China, prompting cost cuts and new product launches.
- 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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84 Articles
84 Articles
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·Stockholm, Sweden
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·Portugal
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Total News Sources84
Leaning Left5Leaning Right13Center15Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
15%
C 46%
R 39%
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