Mercedes-Benz Group reported a 9% year-over-year decline in global vehicle sales for the second quarter of 2025, with total sales reaching 547,100 cars and vans. Car sales specifically fell by 9% to 453,700 units, while van sales decreased by 10% to 93,400 vehicles. Retail sales totaled 464,600 units, with notable increases in the U.S. (+26%) and Germany (+7%). However, sales in North America declined by 14%, including a 12% drop in U.S. sales to 74,600 units, and China experienced a sharp 19% decrease amid intensified competition. Battery electric vehicle (EV) sales were particularly affected, falling 18% to 41,900 units. The company attributed these declines primarily to the impact of tariffs, including new 15% U.S. import tariffs on European autos, as well as weaker demand and pricing pressures across key markets. As a result, Mercedes-Benz revised its 2025 outlook downward, expecting a sharp revenue drop and squeezed margins. Porsche, another German automaker, also cut its 2025 profit outlook for the third time this year, citing a €400 million tariff-related hit in the first half and reporting a 67% drop in operating profit to €1 billion, with revenue down 6.7% to €18.16 billion. Together, Mercedes-Benz and Adidas have flagged a combined tariff cost exceeding $650 million, with Mercedes-Benz trimming its annual sales forecast and Adidas withholding guidance due to these challenges.