German Carmakers Feel The Pain Of Trump’s New Tariffs

German auto giants Mercedes-Benz and Porsche are already feeling the effects of President Trump’s tariffs, Yahoo Finance reported.

Mercedes, with a major U.S. factory in Alabama, has more insulation from the policy shift. I Photo: Mercedes-Benz X

Mercedes saw global sales drop 9% in Q2, with U.S. sales down 12% year-over-year. Porsche’s U.S. sales rose 10%, but the automaker admitted this was driven by pre-tariff inventory and price protections offered to U.S. buyers, cutting into margins.

Porsche, which relies exclusively on EU production, is expected to pass on future tariff costs to consumers, though no timeline has been given. Mercedes, with a major U.S. factory in Alabama, has more insulation from the policy shift.