German Companies Mercedes & Adidas Warn of $650M+ Trump Tariff Costs

Impact of US Tariffs on German Businesses

• ⚠️ Mercedes-Benz and Adidas have warned of significant financial impacts due to potential US tariffs on European exports.
• 💰 The combined estimated cost for these two German giants exceeds $650 million.

Mercedes-Benz Financial Adjustments

• 📉 Mercedes-Benz reported a nearly $420 million impact in Q2 from existing tariffs.
• 📊 The automaker has trimmed its annual sales forecast and lowered its expected profit margin for its car business from up to 8% to up to 6%.
• 📉 Group revenue is now anticipated to be significantly below 2024 levels.

Adidas Cost Increases and Guidance Uncertainty

• 💸 Adidas anticipates an additional $231 million in costs for the second half of the year due to tariffs.
• ❓ The company is withholding its annual guidance, citing uncertainty over final US tariff policies and potential impacts on inflation and consumer demand.
• 📉 Despite a stronger Q2 profit, Adidas's sales fell short of analyst forecasts, raising concerns about its momentum.
• 📉 Adidas shares experienced a decline of over 7% following these announcements.