President Donald Trump’s latest trade moves could deliver a significant financial blow to German automakers Porsche AG and Mercedes-Benz Group AG. The imposition of a 25% tariff on imported cars, scheduled to take effect on April 3, could cost the companies an estimated €3.4 billion ($3.7 billion).
According to Bloomberg Intelligence, the tariffs could potentially wipe out around a quarter of Porsche and Mercedes-Benz’s projected 2026 operating earnings. To mitigate the impact of the new tariffs, the manufacturers may have little choice but to raise prices or potentially shift more production to the United States.
