Mercedes-Benz has firmly refuted a recent Bloomberg News report suggesting that the automaker is considering withdrawing its lower-priced models from the U.S. market in response to an impending 25% tariff on imported vehicles. A company spokesperson emphasized that the claims were “without merit,” stating that Mercedes-Benz is focused on expanding sales of its highly sought-after vehicles in the U.S.

The report indicated that Mercedes-Benz might scale back its entry-level models as part of a broader strategy to address the impact of the new tariff, which is set to take effect on April 3, 2025. The planned tariff has raised concerns among industry experts, who believe it could result in higher vehicle prices and fewer options for U.S. consumers. Entry-level models, which are often targeted at first-time car buyers, may struggle to absorb the additional cost due to tight profit margins.

In response to these potential challenges, Mercedes-Benz executives discussed their efforts during an investor call, revealing that they are actively increasing inventory at the wholesale and dealer levels to mitigate the impact of the tariff. The company continues to evaluate further strategies to protect its U.S. market position amidst changing trade dynamics.

Key Points:

• Mercedes-Benz denies reports of removing affordable models from the U.S. market.
• Company remains focused on growth and the availability of its premium vehicles.
• Tariffs, set to begin April 3, may lead to higher prices and fewer choices for U.S. consumers.
• Mercedes-Benz is working to build inventory in anticipation of tariff impacts.