Mercedes-Benz’s chief financial officer Harald Wilhelm said that if the tariffs remained in place for the full year, they would reduce the company’s profit margin in its car division, which slipped to 7.3 per cent in the first quarter, by 3 percentage points.

Big Three automaker Stellantis (STLA) reported a weakening sales picture in the first quarter, and followed rival GM in suspending its full-year guidance in light of President Trump’s auto tariffs.

President Donald Trump’s tariffs prompted several of Europe’s largest automakers to withdraw financial guidance, underlining the extent of the chaos unleashed by his fast-changing trade tactics.