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Macro EconomyMedium•12 February 2026•

1 min read

Mercedes-Benz Full-Year Profit Halves Amid $1.2 Billion Tariff Hit, Warns of Tough Times

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German luxury car manufacturer Mercedes-Benz Group reported a steep decline in its full-year profit, which more than halved. The company attributed this significant drop, in part, to substantial tariff costs amounting to $1.2 billion. This financial setback led Mercedes-Benz to issue a warning about challenging times ahead for the automotive giant. The considerable impact of tariffs underscores the ongoing pressures faced by global manufacturers in a complex trade environment. Investors will likely monitor how the company navigates these headwinds and its strategies for future profitability.