Mercedes, Volkswagen, Stellantis scrap forecasts over Trump tariffs

Automakers Withdraw Profit Guidance Amid Tariff Uncertainty

Stellantis and Mercedes-Benz are the latest automakers to scrap their profit guidance due to the uncertainty caused by tariffs in President Trump’s trade war. Volkswagen also issued guidance at the lower end of its forecast, with analysts noting the lack of inclusion of the impact of US tariffs. This uncertainty has left many in the industry waiting for clarity.

The trade war has led to market chaos, with companies worldwide adjusting their guidance. The 25% tariffs on imported autos are expected to increase US car prices significantly, affecting demand and profit margins. Despite the challenges, executives like those at Mercedes remain calm and are engaging in talks with the Trump administration.

Trump’s recent orders offering tariff relief to domestic automakers have been met with muted investor reactions. Automakers will no longer face certain tariffs, which could benefit companies like Stellantis that rely heavily on US production. However, the industry remains cautious about the future impact of tariffs.

Despite the uncertainty, automakers are prepared to work with policymakers and adjust their forecasts as needed. The industry thrives on market certainty, and any changes in tariff policies can have significant implications on investments and operations. The need for clarity in the global automotive industry remains paramount.

Stellantis cited evolving tariff policies as the reason for pulling its guidance, indicating the challenges faced by manufacturers in predicting market impacts. Analysts suggest that Trump’s focus on increasing domestic production could further burden manufacturers with ongoing tariff costs and restructuring efforts.