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Mercedes-Benz is ramping up its USÂ inventory to get ahead of a 25% tariff on imported vehicles set to take effect from April 3, according to Reuters, citing analyst notes from a recent investor call. Executives told analysts the company is building stock both at dealerships and at the wholesale level in anticipation of the added costs.
Mercedes-Benz is building up inventory levels in the U.S. at the wholesale level and at dealer lots to get ahead of tariffs due to be collected from April 3, executives told analysts on a call on Monday, according to notes by analysts.
Under President Trump's new auto tariffs, even the company's made-in-USA vehicles aren't American enough to avoid levies.
European carmakers are trying to work out how much their prices might have to rise in response to looming U.S. import tariffs, industry sources said, fearing any first-movers could risk a backlash from U.S. President Donald Trump.
President Trump announced new 25% tariffs on auto imports, impacting foreign automakers and potentially leading to retaliatory tariffs from countries like Japan, Canada, and the EU. US automakers like GM and Ford may see limited direct impact, but global free trade and the overall economy could suffer from escalating trade tensions. Companies with US production, like Toyota and BMW, will be less affected, while those without, like Audi, face significant challenges; Chinese EV makers remain largely unaffected.
Dan Ives, senior equity research analyst at Wedbush Securities, says auto tariffs unveiled by President Donald Trump would be a "gut punch" to Detroit as he examines the potential impact on General Motors, Ford, and Stellantis, as well as Tesla.
Trump's 25% auto tariff shook markets, hitting stocks and sparking fears of a global trade war. UAW backed the move, while Tesla and foreign automakers warned of higher costs and job risks.
Dan Levy, Barclays senior equity research analyst, joins 'Squawk Box' to discuss President Trump's 25% tariff on all cars and trucks manufactured outside the U.S., impact on the auto industry, and more.
Mary Lovely, Senior Fellow at the Peterson Institute for International Economics, shares her thoughts on what to expect from President Trump as he is set to announce new auto tariffs. Mary talks about how these new auto tariffs could work in conjunction with the tariffs President Trump has already announced, and if Europe will retaliate and place tariffs on US products.
Tesla stock was rising in premarket trading Thursday, which looked set to be a bad day for the autos sector.