Mercedes-Benz Vehicle Sales Hit by U.S. Tariffs, Difficult Chinese Market

By Dominic Chopping

Mercedes-Benz car and van sales fell 12% to 525,300 vehicles in the third quarter as a challenging Chinese market and President Trump's auto tariffs hit consumer appetite.

Trump imposed a 25% duty on imported cars and parts entering the U.S. in early April, before later agreeing to a trade deal that lowered the rate to 15% for cars shipped from the European Union. Mercedes said tariff policies mainly affected sales in the U.S. and China, while it carefully managed stock levels in the U.S. as part of its efforts to mitigate the tariff hit.

In China, the auto market has undergone radical change, with electric vehicles dominating local consumer demand and an intense price war among the growing list of domestic manufacturers. Trade tensions with the West have compounded the challenges.

"While sales in Europe, South America and Gulf States [are] performing well, our sales in the third quarter were impacted by the market conditions in China," marketing and sales chief Mathias Geisen said.

The German luxury automaker said overall car sales fell 12% on year, as sales in the U.S. dropped 17% to 70,800 vehicles, while in its biggest single market of China, sales slumped 27% to 125,100 cars.

In its home market of Germany, car sales rose 3%.

Battery-electric vehicle sales rose 9% in the quarter on year, buoyed by the launch of its electric CLA model and improved availability of electric vans.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 07, 2025 08:14 ET (12:14 GMT)