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Mercedes is considering pulling its lowest-priced cars from US lots over tariffs

Auto analysts expect sticker prices to spike in response to President Trumps 25% tariffs on imported vehicles (by more than $12,000 in some cases), but price hikes arent the only outcome that might come out of the levies.

Mercedes-Benz is said to be weighing an alternate option: pulling its most affordable vehicles out of the US entirely.

According to reporting by Bloomberg, sales of the German luxury carmakers lowest-cost, entry-level vehicles (like its $43,000 GLA SUV) wouldnt make economic sense amid the tariffs set to go into effect on Thursday.

Germany, which exports more cars to the US than any other European country, is home to several automakers that stand to lose big under Thursdays tariffs. Mercedes and Porsche could face a combined $3.7 billion hit.

Updated research from JPMorgan shows that US auto prices could rise 11.4% on average, with the most affordable new vehicles hit particularly hard.

According to reporting by Bloomberg, sales of the German luxury carmakers lowest-cost, entry-level vehicles (like its $43,000 GLA SUV) wouldnt make economic sense amid the tariffs set to go into effect on Thursday.

Germany, which exports more cars to the US than any other European country, is home to several automakers that stand to lose big under Thursdays tariffs. Mercedes and Porsche could face a combined $3.7 billion hit.

Updated research from JPMorgan shows that US auto prices could rise 11.4% on average, with the most affordable new vehicles hit particularly hard.

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Amazon doubles down on groceries with new private-label collection, sending grocery stocks lower

Amazon on Wednesday launched Amazon Grocery, a new private-label food brand that combines its Fresh and Happy Belly lines into one collection.

The label covers more than 1,000 staples, from milk and eggs to olive oil and fresh meat, with most items priced under $5. Shares of Amazon were little changed, but grocery-selling rivals Target, Walmart, and Kroger all slipped around 2% following the announcement. Costco also slipped about 1%.

The launch highlights Amazon’s growing push into both grocery and private-label essentials as more customers trade down to cut costs. In August, the e-commerce giant added perishable groceries to same-day delivery in 1,000 cities and towns across the country.

At the same time, Amazon said shoppers purchased 15% more private-brand products in 2024 compared to the previous year across Amazon.com, Whole Foods Market, and Amazon Fresh.

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