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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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The entrance of Allbirds seen from Hayes St. in San Francisco, Calif.

Allbirds, the once buzzy multibillion-dollar sneaker startup, is selling up for $39 million

That’s less than 1% of its peak market cap about four years ago.

Tom Jones3/31/26
business

JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

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