FRANKFURT, April 30 (Xinhua) -- Germany's luxury vehicle producer Mercedes-Benz Group announced a continued plunge in net profit for the first quarter of 2025, as global demand remained subdued and U.S. tariff pressures intensified.
Car deliveries declined by 4 percent year-on-year to 446,300 units, with revenue falling 7 percent to 33.22 billion euros (billion U.S. dollars). Earnings Before Interest and Taxes (EBIT) dropped 41 percent to 2.29 billion euros (billion U.S. dollars), and net profit fell 43 percent, extending the downward trend from 2024.
The company saw falling unit sales across most categories, except for Mercedes-AMG and G-Class SUVs, which rose by 17 percent and 18 percent respectively.
According to the company's financial report, the significant increase in the U.S. trade deficit due to front-loading ahead of import tariffs dampened growth in the American market.
Mercedes-Benz noted that rising U.S. tariffs and global countermeasures have created substantial uncertainty for future business development, severely impairing forecasting capabilities.
"The growth outlook for the world economy has recently deteriorated noticeably. Weak consumer sentiment and the impact of a significant increase in U.S. tariffs will weigh on growth this year, particularly in the United States."
Trump's trade war has pummeled markets in recent weeks, even before the latest developments. Major automotive companies are growing concerned about U.S. tariffs, forcing them to postpone investments or adjust their business strategies. British luxury carmaker Aston Martin and German car manufacturer Audi have temporarily halted its imports of cars to the United States in response to tariffs. ■
