Mercedes Sales Decline Following Two Hits from Trump's Tariffs | Carscoops

      Imports from Europe and US exports to China both faced challenges due to Trump's decision to increase tariffs.

      6 hours ago

      By Chris Chilton

      Mercedes experienced a 9 percent decline in sales during Q2, impacted by global trade tensions.

      Sales in the US fell by 12 percent, while deliveries in China decreased by 19 percent.

      Electric vehicle sales dropped nearly a quarter; however, Mercedes is hopeful that the new CLA EV will assist in recovery.

      As companies like Audi consider relocating production to the US to avoid tariffs, Mercedes’ Q2 sales figures highlight the repercussions of President Trump's actions.

      Overall, Mercedes sales decreased by 9 percent in the three months leading to June compared to the same timeframe in 2024, with 453,700 passenger vehicles sold this Q2, down from 496,700 in the previous quarter. Though tariffs were not the sole cause of this drop, they certainly contributed significantly.

      US sales of Mercedes cars and SUVs fell by 12 percent to 74,600 during a time when European car imports faced increased tariffs. While Mercedes produces key models like the GLE and GLS in Alabama, it still relies on many other models—including the E-Class, S-Class, and GLC—from Europe.

      Although the GLE and GLS, built in the US, avoided immediate impacts from Trump's tariffs, they were indirectly affected. After Trump imposed tariffs on Chinese goods, China retaliated with its own tariffs on US products. Consequently, Mercedes sales in China plummeted by 19 percent to 140,400 in Q2.

      However, Mercedes sales in China were already on a downward trend, having reported a 10 percent decline in Q1 before the tariffs took effect.

      Additionally, Mercedes noted a concerning decline in EV sales this year. Battery-powered car deliveries fell by 24 percent in Q2 (to 35,000) and by 19 percent in the first half of 2025 (to 75,700). Still, the automaker tried to maintain an optimistic outlook, indicating that orders for the new CLA, which has an EV variant, are “gaining momentum,” and that more versions of that model, along with the new electric GLC, will launch later this year.

      The company also pointed out significant growth in plug-in hybrids, with global sales increasing by 34 percent, leading electrified vehicles to represent 40 percent of all Mercedes models sold in Europe and 21 percent worldwide.