Recent reports have suggested that Mercedes-Benz was considering cutting some of its least expensive models in the U.S. to cope with the expected shocks from planned tariffs, but the automaker has made clear that it has no such plans. It denied reports from Bloomberg News, saying they were “without any merit.”

 

The automaker continued, saying, “Mercedes-Benz continues to seek sales growth for its highly desirable vehicles.” While the scope of the tariffs is yet to be announced, they are widely expected to lead to higher car prices and fewer vehicle choices. Automakers may be able to absorb some of the increased costs, but the ultra-slim margins on less expensive models make them less able to be sold without a markup.