Mercedes-Benz profit plunges on China slump and US tariffs

Mercedes-Benz’s sales by volume in key market China fell 27% in the third quarter, dragging overall sales down 12%. (EPA Images pic)

FRANKFURT: German premium carmaker Mercedes-Benz reported plunging third-quarter profit Wednesday, hit by weak sales in China as well as US tariffs.

Net profit at the Stuttgart-based company fell 30.8% to hit €1.19 billion (US$1.38 billion), beating analyst expectations of €1.09 billion in a poll by financial data firm FactSet.

“Our third-quarter results are in line with our full-year guidance,” Mercedes-Benz boss Ola Kaellenius said.

In July, the firm lowered its outlook for the year after US President Donald Trump’s tariff onslaught and said it expected revenue for 2025 to be “significantly below” the €146 billion it took in last year.

Car exports from the EU are subject to a tariff of 15% under an EU-US deal unveiled late July, down from 27.5% but far higher than the 2.5% in force before Trump launched his trade war in April.

Mercedes-Benz — which has a plant in Tuscaloosa, Alabama — also has to grapple with US duties of 25% on imports of car parts that come from outside North America.

Sales by volume in key market China meanwhile fell 27% in the third quarter, helping drag overall sales down 12%.

The country — also the world’s largest car market — has become a battleground for German carmakers amid a brutal price war and fierce competition from local players like BYD.

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