Mercedes Warns Tariffs Are Going to Be Even Worse in 2026: TDS

The German luxury marque won't say precisely how much it lost to tariffs last year, but it's told analysts that it doesn't expect 2026 to be any better on that front.
A Mercedes dealer storefront in New York City
Mercedes-Benz

Good morning and welcome to The Downshift, or TDS for short.

Tight, light, and right as they say in the biz, TDS gathers the latest automotive news from around the globe in one place. Stories are summarized in a couple of sentences along with a link for those seeking more info. It’s Monday and officially spring—let’s go!

📈 Mercedes has reportedly warned analysts that tariff costs will be higher in 2026 than last year, per Automotive News. While the automaker has not broken out how much tariffs set it back in 2025, it did confirm that its adjusted return on sales fell from 8.1% to 5%, and tariffs were part of the culprit.

⛽ BMW would produce an EV with a gas range extender once again if it noticed demand for it, and if the resulting vehicle drove in a way that fit the brand, an executive told BMWBlog.

⚡ Kia’s new EV2 compact electric SUV will soon go on sale in Europe, and is priced at the equivalent of $30,800, Auto News reports. For that money, it offers 197 miles of range based on the WLTP cycle.

💎 Even Rolls-Royce isn’t immune to recalls, as the company has advised customers to avoid using back seats in Cullinan SUVs built as far back as 2019 due to loose bolts in second-row seatbelt retractors, Carscoops reports.

🛻 Mazda appears to be open to the possibility of offering a pickup for the first time in decades, per comments made by an executive to Australia’s CarSales, but there’s very little chance it would see the U.S market. The vehicle in question would be a rebadge of a funky unibody electric truck sold in China called the Deepal E07.

💜 German tuning specialists Novitec have cranked up the Lamborghini Revuelto to 1,048 horsepower while also giving it plum paint, in a nice nod to the Diablo of our youth, Autoblog reports.

🏁 Weekend Race Results:

IMSA 12 Hours of Sebring – Felipe Nasr, Julien Andlauer, and Laurin Heinrich win for Porsche Penske Motorsport

NASCAR Cup Series at Darlington — Tyler Reddick wins for 23XI Racing

NASCAR O’Reilly Auto Parts Series at Darlington — Justin Allgaier wins for JR Motorsports

NASCAR Craftsman Truck Series at Darlington — Corey Heim wins for Tricon Garage

MotoGP Brazilian Grand Prix — Marco Bezzecchi wins for Aprilia

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Adam Ismail Avatar

Adam Ismail

Senior Editor

Backed by a decade of covering cars and consumer tech, Adam Ismail is a Senior Editor at The Drive, focused on curating and producing the site’s slate of daily stories.