AsianFin -- Mercedes-Benz has scrapped its earnings forecast for 2025, citing heightened uncertainty around U.S. President Donald Trump’s tariffs on imported cars, after posting a sharp drop in first-quarter profit.

The German luxury automaker said Wednesday that “current volatility,” particularly regarding customer behavior and demand, made it too difficult to provide reliable guidance for the rest of the year. It warned that if the tariffs remain in place, earnings will be “negatively impacted.”

Mercedes is facing mounting headwinds across all major markets—grappling with protectionist trade policies in the U.S., intense competition from domestic EV makers in China, and stringent emissions regulations in Europe.

The move comes just a day after Volvo Cars also withdrew its profit outlook for the next two years, citing similar concerns over the fallout from U.S. tariffs.