--- title: "Mercedes Warns Tariffs Are Going to Be Even Worse in 2026: TDS" date: "2026-03-23" modified: "2026-03-23" authors: - name: "Adam Ismail" job_title: "Senior Editor" link: "https://www.thedrive.com/authors/adam-ismail" url: "https://www.thedrive.com/news/mercedes-warns-tariffs-are-going-to-be-even-worse-in-2026-tds" categories: - "News" - "The Downshift" --- # Mercedes Warns Tariffs Are Going to Be Even Worse in 2026: TDS ![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 springβ€”let's go! πŸ“ˆ 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. β›½ 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. πŸ’Ž 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. πŸ›» 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. πŸ’œ 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 β€” Tyler Reddick wins for 23XI Racing NASCAR O'Reilly Auto Parts Series at Darlington β€” Justin Allgaier wins for JR Motorsports NASCAR Craftsman Truck Series at Darlington β€” Corey Heim wins for Tricon Garage MotoGP Brazilian Grand Prix β€” Marco Bezzecchi wins for Aprilia *Got a tip? Reach out to tips@thedrive.com* ## Author Adam is a Senior Editor at The Drive, concentrating on curating and developing the site's slate of daily journalism, from initial pitch to final copy edit. When he's not at his desk researching leads and working with writers, he's testing vehicles or reviewing racing games, new and old. He joined The Drive in 2023, following seven years of covering consumer technology and cars. A car lover and gamer since his earliest memories, Adam came to know the automotive world through video games. First it was Daytona USA, Sega Rally, and Ridge Racer; then came Need For Speed, which inspired an encyclopedic knowledge of '90s supercars, and, of course, Gran Turismo. If not for them, he'd assuredly be doing something else right now. Adam is based in the suburbs outside Philly, where there are ample roads for his hot hatch to stretch its legs. In his car, he's probably listening to indie rock, drum and bass, or Yankees baseball. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()