Pakistan, April 30 -- Mercedes-Benz reported a decline in profitability for its car division in the first quarter of 2025. The company's profit margin dropped to 7.3%, compared to 9% in the same period last year. This decline is primarily attributed to rising trade tensions and tariff policies affecting its operations.

Group earnings before interest and taxes (EBIT) fell sharply by 41%, reaching 2.3 billion euros ($2.62 billion). Mercedes warned that the ongoing volatility in tariff policies and their effects on consumer behavior make it difficult to predict business performance for the rest of the year.

The company also highlighted the challenges European carmakers face due to the unpredictable tariff regime, particularly under Preside...