Mercedes May Abandon U.S. Entry-Level Market in Trump Era
2nd April 2025
As President Trump’s long-anticipated reciprocal tariff deadline approaches tomorrow, early signals suggest that the global trading system may soon undergo disruptions and structural shifts. These changes eventually set the path for the administration’s ‘America First’ trade agenda to flourish and raise barriers for foreign automakers seeking to access the U.S. market. In turn, domestic automakers like Ford Motor Company, General Motors, and Tesla will have massive competitive advantages.
One of the first major changes is that Mercedes-Benz Group AG will potentially stop flooding the U.S. with cheap entry-level cars after spending the last three decades shifting down-market to attract younger and broader demographics.
I can think of many things to say about Mercedes, but ‘cheap’ and ‘entry level’ aren’t included.