Mercedes-Benz May Stop Selling Cheaper Models in the U.S. — But the Company Says Otherwise

Mercedes-Benz might stop selling its cheaper cars in the United States. This is because new import taxes (called tariffs) are expected soon. These taxes could make it more expensive to bring cars from other countries into the U.S..

A report from Bloomberg says that Mercedes-Benz is thinking about removing entry-level models like the GLA, CLA, and maybe even the C-Class from the U.S. market. These are the brand’s most affordable cars.

However, Mercedes-Benz says this is not true. A spokesperson for the company said the report is “without merit” and that Mercedes is focused on growing its sales. Last year, the company’s sales went up by almost 10 percent.

Many carmakers are now trying to find ways to handle the upcoming 25 percent import tax. Some models, like the GLA and CLA, are made in Europe—GLA in Germany and CLA in Hungary.

These cars would be hit with the full tariff. But cars made in Alabama, like some of the bigger Mercedes models, would not be affected.

Luxury brands often use entry-level models to attract new buyers. The idea is that a customer might start with a cheaper car and later upgrade to a more expensive one. But a big price increase could make these affordable models too costly for many buyers. For example, a 25 percent price bump on a $42,000 GLA could add over $10,000 to the cost.

Other luxury car brands are already reacting. Ferrari has raised prices on some models, and Aston Martin says prices will go up soon.

It’s not clear yet what Mercedes-Benz will do. They may raise prices or change which models they sell. But with new tariffs starting soon, many carmakers are making changes quickly. The future of cheaper Mercedes models in the U.S. is still uncertain.

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