Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Japan Implements AI Technology to Enhance Early Detection of Investment Scams, Strengthening Consumer Protections

    September 3, 2026

    Inflation in South Korea Accelerates to 3.1%, Driven by Rising Costs

    September 3, 2026

    From Grid Connection to Critical Loads: Daqo Demonstrates Integrated Power Capabilities for the Middle East and Africa

    September 3, 2026
    Facebook X (Twitter) Instagram
    Quds Times: Jerusalem and Palestine, in context.Quds Times: Jerusalem and Palestine, in context.
    • Home
    • Contact Us
    • Automotive
    • Business
    • Entertainment
    • Health
    • Lifestyle
    • Luxury
    • News
    • Sports
    • Technology
    • Travel
    Quds Times: Jerusalem and Palestine, in context.Quds Times: Jerusalem and Palestine, in context.
    Home » US tariffs and tax changes force Mercedes-Benz EV price drop
    Automotive

    US tariffs and tax changes force Mercedes-Benz EV price drop

    August 2, 2025
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Telegram Email

    Mercedes-Benz has announced significant price reductions for its EQ electric vehicle (EV) lineup in the United States, in response to weakening demand and the impact of new trade tariffs introduced by former President Donald Trump. The automaker is also temporarily suspending deliveries of several EQ models, including the EQS and EQE sedans and SUVs, as dealership inventories continue to rise.

    The decision follows the implementation of a recent U.S. spending bill that curtailed federal tax credits for EVs ahead of schedule. The changes, combined with higher import tariffs on auto and component imports from the European Union and other countries, have led to a softening of demand in the American EV market. Mercedes-Benz is taking steps to manage excess inventory during the delivery pause, while vehicles produced at its Vance, Alabama plant will continue to be exported to other markets.

    Mercedes-Benz plans to cut prices on its EQE and EQS models in the U.S. by between 4 and 16 percent, beginning with the 2026 model year. These price reductions exclude delivery charges and are aimed at stimulating consumer interest in a segment that has become increasingly price-sensitive. Despite current market setbacks, Mercedes-Benz CEO, Ola Källenius reaffirmed the company’s long-term commitment to battery electric vehicles in the U.S.

    Mercedes-Benz cuts EV prices as tariffs and tax changes bite

    He stated during the company’s second-quarter results that while short-term demand is down, the company remains confident in the medium- and long-term adoption of EVs in the country. Mercedes-Benz recently updated its product roadmap to include a balanced mix of combustion and electric models, with plans to launch 17 new EVs and 19 combustion-engine vehicles by 2027.

    Production of EQ models at the Vance facility will be significantly reduced in the coming months. Mercedes-Benz is expected to cut EV output by nearly 55 percent between August and December 2025, dropping from 1,179 vehicles in August to 534 by December. Currently, around 60 electric vehicles are produced daily at the plant, with 50 of those destined for export.

    Analysts warn pricing tactics could harm brand equity

    Mercedes-Benz benefits from tariff exemptions for exported vehicles as part of a trade arrangement between the United States and the European Union. In the domestic U.S. market, however, the EQ lineup has struggled to gain traction. Wholesale shipments of the EQS SUV declined 32 percent in the first half of the year, while EQE crossover deliveries fell 35 percent.

    The company has resorted to heavy discounting to reduce stock, with the EQE sedan discounted by 18 percent and the EQS sedan by 15 percent in the second quarter, according to Edmunds. Still, it took an average of 113 days for dealers to sell an EQE sedan and 87 days for the EQS sedan.

    Industry analysts have expressed concern that such discounting is unsustainable. Ivan Drury, director of insights at Edmunds, noted that persistent price cuts can hurt brand perception and reduce residual values, making long-term profitability more difficult. Mercedes-Benz is expected to shift more production focus toward internal combustion engine crossovers, which continue to see stronger demand among American buyers. – By EuroWire News Desk.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Porsche to cut 5000 more jobs under restructuring plan

    July 28, 2026

    Japan new car sales rise 1.8% in first half of 2026

    July 2, 2026

    FIA expands road safety program in Middle East and Africa

    May 1, 2026

    Mercedes-Benz unveils electric C-Class in Seoul

    April 21, 2026

    2027 Mercedes-Benz S-Class adds DIGITAL LIGHT micro-LEDs

    January 30, 2026

    Tesla boosts China-made EV shipments by 9.9 percent

    December 4, 2025
    Latest News
    Technology

    Japan Implements AI Technology to Enhance Early Detection of Investment Scams, Strengthening Consumer Protections

    September 3, 2026

    Japan is advancing its efforts to combat investment fraud by deploying a novel system that leverages artificial intelligence to identify warning signs at an earlier stage. The Consumer Affairs Agency introduced this initiative on September 1. It will scrutinize consumer complaints for specific language and recurring patterns associated with fraudulent activities and failing companies. According to the package, AI will work alongside existing keyword searches, enabling earlier alerts, investigations, and enforcement actions when complaint data suggest significant risks.

    Inflation in South Korea Accelerates to 3.1%, Driven by Rising Costs

    September 3, 2026

    UAE Strengthens Relations with Kurdistan Region in Abu Dhabi Discussions, Focus on Regional Stability

    September 2, 2026

    Korea’s Export Figures Show 68.7% Growth in August, Fueled by Semiconductor Demand

    September 2, 2026

    Xi Jinping Visits Egypt to Commemorate 70 Years of Diplomatic Ties, Celebrating a Longstanding Partnership

    September 2, 2026

    India’s Economy Achieves 7.8% Growth, Modi Recognizes Robust Expansion

    September 2, 2026

    Modi-Putin Discussions at SCO Summit Signal Strengthening India-Russia Relations, Focus on Regional Stability

    September 2, 2026

    UN Warns Child Violence Risks Could Worsen as 2030 Goals Are Missed, Experts Say

    September 1, 2026
    © 2026 Quds Times | All Rights Reserved
    • Home
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.