Daimler first car maker to warn that trade tiff may affect profits
SUVs built in Alabama and then shipped to China will be caught up in retaliatory tariffs announced in China in response to Donald Trump’s levies on Chinese goods
Daimler became the first prominent company to cut its profit outlook due to the escalating trade tension between the US and China, claiming Chinese customers will now buy fewer cars after Beijing slaps tariffs on US car imports. The manufacturer of Mercedes-Benz cars said late on Wednesday that its full-year earnings excluding some items would be slightly lower than last year. Many sport utility vehicles (SUVs) are built in Alabama and then shipped to China. Those vehicles are now caught up in retaliatory tariffs announced in China in response to President Donald Trump’s levies on $50bn in Chinese goods. With the rising prospect of an all-out trade war, few industries would be spared and more companies might have to follow Daimler, said Nicholas Smith, a strategist at CLSA Securities in Tokyo. MillerCoors, the maker of Miller Lite and Coors Lite, warned last week that US tariffs on aluminium imports could result in a $40m hit to its bottom line. Shares of German car makers fell on T...
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