Mercedes-Benz will not, for now, increase the prices of its 2025 models in the U.S., despite the imposition of 25-percent tariffs imposed by the Trump administration on vehicles imported into the country. The company made the announcement on Monday.
"We continue to monitor the situation closely, are evaluating all options and will adjust to changing market conditions and the competitive landscape if needed.”
- Mercedes-Benz spokesperson Michael Minielly
What we can gather is that Mercedes-Benz is giving itself some time to see how things evolve. And for dealerships, the automaker’s decision surely comes as a relief that will allow them to remain competitive.
Manufacturers are facing a difficult situation. Massively passing the cost of tariffs on to consumers could cause sales to crater, but it could eventually force the U.S. administration to back down. On the other hand, if others follow Mercedes’ lead and absorb the tariffs, that could just encourage the government to stand firm. But it’s also worth remembering that carmakers are first and foremost rivals, and that their objective remains is to sell as many vehicles as possible in order to make profits and also support dealerships.
For Mercedes-Benz, imports into the U.S. accounted for 35 percent of the brand's vehicle sales there in 2024.
Mercedes-Benz manufactures vehicles in the United States. Its plant in Tuscaloosa, Alabama currently builds the GLE and GLS SUVs, as well as the EQE and EQS electric vehicles.