Mercedes-Benz Denies It Will Stop Selling Entry-Level Models in U.S.

Twenty-five percent tariffs on cars imported to the U.S. begin this week, and automakers have been scrambling for weeks in preparation, with major upheaval expected—especially for luxury brands that import. Mercedes, however, has denied reports that it will be halting the sale of some models stateside in response to the levies, including entry-level iterations.

“This is without any merit. Mercedes-Benz continues to seek sales growth for its highly desirable vehicles,” the company said in a statement emailed Thursday.

Bloomberg reported this week that GLA subcompact SUV is one such model that reportedly might no longer be for sale in the U.S. Mercedes’s other entry-level cars include the C-Class, the GLB and GLC SUVs, and the CLA, which are all made overseas.

The publication’s sources said that Mercedes is “mulling cutting sales of more entry-level models like the small GLA sport utility vehicle as part of broader tariff contingency plans.” They explained the company “hasn’t made a final decision and may still shift course depending on how the levies are implemented.”

Automakers have been trying to decide how to deal with the tariffs implemented by President Donald Trump, with much of the cost likely to be passed down to consumers. For luxury automakers, the calculus is a delicate one, since it might not expect sales of its highest-priced cars to be dented that much because buyers’ profiles are wealthier.

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For models like the GLA, which starts at $43,000, the expectation is likely different because the buyers are more price-sensitive. Mercedes does not expect to make huge profits from its lower-priced cars, but the GLA, C-Class, and other lower-priced Mercedes cars are an entry point for buyers new to the brand. Those same buyers might later on in life purchase a pricier model like an E-Class sedan or GLS full-size SUV, and so the lower-priced Mercedes cars serve an important function, or so luxury automaker theory and market research goes. Any disruption to that business model would be a sea change.