Mercedes, Volkswagen, Stellantis latest carmakers to scrap forecasts over Trump tariffs

Unable to predict the impact of President Trump’s ever-changing trade war, Stellantis and Mercedes-Benz became the latest automakers on Wednesday to scrap their profit guidance citing market uncertainty wrought by tariffs.Volkswagen issued guidance at the bottom end of its forecast, but UBS analyst Patrick Hummel wrote in a client note that the German group’s outlook did not “include any impact of US tariffs,” calling it “essentially a withdrawal of guidance.”Stellantis Chief Financial Officer Doug Ostermann typified the mood, telling analysts: “Most of us are in a period of waiting for a bit more clarity.”Fabio Caldato of fund manager Acomea SGR, which owns Stellantis shares, said that in meetings with the company, its competitors and suppliers, corporate management teams have “candidly clarified their lack of visibility, so we’re not really shocked by Stellantis’ decision” to pull its guidance.”“As investors, we play by it by ear … relying on common sense prevailing in current tariff negotiations,” he added.Trump’s trade war has pummeled markets in recent weeks and even before the latest moves, a Reuters analysis showed that about 40 companies worldwide had pulled or lowered their guidance in the first two weeks of the first-quarter earnings season, including General Motors and Volvo Cars.That underscore the chaos unleashed by the ever-changing tariffs and the uncertainty in boardrooms and on Main Street, which is stifling Americans’ appetite for spending.The 25% tariffs on imported autos imposed earlier this month are expected to raise US car prices by thousands of dollars, reducing demand and piling pressure on an industry already struggling with a slowing transition to electric vehicles.Faced with a lack of clarity, Mercedes executives exuded an aura of studied calm during the company’s first-quarter conference call with analysts, referring to Trump’s shifting tariff policy as a “dynamic market environme...