Mercedes Quietly Halts EV Deliveries to the US While Stealthily Reducing Prices | Carscoops

      Mercedes has halted EV shipments to the U.S. due to low demand and high dealer inventory.

      Additionally, the company plans to reduce prices for the EQE and EQS models by as much as 16 percent starting with the 2026 model year.

      Increasing tariffs and diminishing incentives are making it challenging to sustain U.S. EV sales.

      A market that is only “creeping upwards” isn't what most brands aspire to achieve. However, that is the expectation Mercedes-Benz has for the U.S. electric vehicle market, which is one reason they have paused certain EV deliveries to the country.

      Importantly, Mercedes already produces some EVs in the U.S. at its facility in Alabama. Furthermore, they indicate that dealer inventory is currently high and demand remains low. This situation has led to their recent decision; essentially, if you want a new Mercedes EV, you’ll need to purchase one that is already available.

      More: VW Denies Halting ID. Buzz Exports To US Over Tariffs

      A spokesperson told Reuters, “Mercedes-Benz is temporarily pausing order banks for EQ models in the U.S. to align with current market demand.” This statement comes after CEO Ola Kaellenius noted in a Q2 presentation that the company anticipates a slowdown in EV sales across the board.

      Tariffs, Incentives, and Price Pressures

      “We don’t believe that the demand for battery electric vehicles (BEVs) in the United States will drop to zero: we still expect the medium to long-term adoption rate of BEVs in the U.S. to gradually increase,” he stated. This is happening at a time of significant changes in the industry, especially in America. The pressure from tariffs, combined with the conclusion of EV tax incentives, is driving prices higher for consumers.

      To remain competitive and better match changing consumer expectations, Mercedes also intends to lower the base prices of several of its electric models. Starting with the 2026 model year, the company announced to Reuters that it will decrease prices for its EQE and EQS sedans and SUVs by 4 to 16 percent, excluding delivery fees.

      Automakers worldwide are acknowledging the necessity to adapt their strategies. Jaguar and Land Rover have postponed their EV initiatives, and Porsche has similarly delayed its electric Boxster project. They are even developing a next-generation gasoline-powered Macan in response to market pressures.

      Companies such as General Motors and Stellantis have already incurred billions in losses due to tariffs, even while manufacturing numerous vehicles in the USA. Meanwhile, other automakers like Porsche and Kia are raising prices, and countries like Canada are contemplating changes to internal regulations to avoid tariffs. Given this context, it's likely not the last adjustment we will witness from a company like Mercedes in response to industry pressures regarding EVs.