Mercedes, Porsche Cut Forecasts as US Tariffs Hammer German Cars

Mercedes-Benz Group AG and Porsche AG scaled back their profit expectations for the year, underscoring the toll President Donald Trump’s trade war is taking on some of Europe’s largest luxury-car makers.

The two German manufacturers on Wednesday flagged the twin pressures of new US tariffs and intensifying competition in China, where an electric-vehicle price war is undermining demand for pricier models.

Mercedes now expects its carmaking margin to slide as low as 4%, from at least 6% previously, as the duties weigh on pricing and sales. Porsche, which lacks a US factory, cut its outlook for the third time this ...