Mercedes-Benz is weighing whether to withdraw some of its cheapest cars from the US market, including the GLA SUV, as it braces for a potential hit from President Donald Trump’s proposed 25% auto tariffs, Bloomberg reported.
The German carmaker has not made a final decision but is reviewing contingency plans, sources told the outlet.
The tariffs, expected to take effect this week, could wipe out already thin margins on lower-end models.
Mercedes aims to shield its more profitable SUV and luxury car sales, which remain in high demand in the US.
The company, under CEO Ola Källenius, has already pivoted away from compact cars. Analysts estimate new tariffs could cost Mercedes and Porsche up to €3.4 billion.