Daimler AG cuts its profit forecast for the year, citing an expectation that Chinese consumers will buy fewer Mercedes-Benz sport utility vehicles because of tariffs being slapped on autos imported from the U.S.
Earnings before interest and taxes will be slightly lower than last year, the German luxury-car maker said in a statement. The Stuttgart, Germany-based company had said in April that Ebit would be slightly higher than 2017.
“The decisive factor is that, at Mercedes-Benz Cars, fewer than expected SUV sales and higher than expected costs -- not completely passed on to the customers -- must be assumed because of increased import tariffs for US vehicles into the Chinese market,” the company said in its statement.
China announced retaliatory tariffs on cars imported from America last week in response to U.S. President Donald Trump’s vow to impose levies on at least $50 billion in Chinese goods. Trump has since pledged to tax an additional $200 billion in Chinese imports.
Daimler produces Mercedes-Benz C-Class sedans and GLS and GLE crossovers near Tuscaloosa, Alabama.