President Donald Trump has famously wielded a big tariff stick to try and get OEMs to relocate manufacturing to the USA. And companies like Mercedes-Benz are starting to take these tariffs seriously as part of a broader response to toughening market conditions. Mercedes is well aware of movements in the market due to EV recalibration and weaker Chinese demand, and can point to its end-of-year results as evidence.
Due to such market conditions (which included the effects of Trump's 25% auto tariffs), Mercedes-Benz showed a 57% collapse in its group EBIT (earnings before interest and tax) readings last year. These figures slumped from €13.6 billion to €5.8 billion and, at the same time, company accountants confirmed more than a full percentage point off automotive operating margins.
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