Daimler’s profit warning in the middle of trade line

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Carmaker Daimler has said that it expects lower earnings this year, amid a growing trade dispute between the usa and China.

It anticipates lower-than-expected sales of Mercedes-Benz Suvs because of a tax on the importation of vehicles in China.

The plans of the united states to tax at least $50bn (£38bn) of imports from china in response to China’s alleged intellectual copyright law, vol.

China said it would levy taxes on billions of dollars of U.S. products, including cars, from the 6 July in return.

The Advantage of the administration threatened further tariffs on the other up to $400 billion of Chinese goods if China continues to retaliate.

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Daimler, owner of Mercedes-Benz, said of the gains from the sales of cars have been called to be “slightly below the previous year”.

“Today, the decisive factor is that, at Mercedes-Benz Cars, the less-than-expected SUV sales and higher than expected costs – not completely passed on to customers – must be assumed because of the increase in import tariffs for the US vehicles in the Chinese market,” the company said in a press release.

“This effect cannot be fully compensated by the reallocation of vehicles to other markets.”

Earlier this month, Daimler has been forced to recall vehicles in Germany, to be fitted with a illegal software that masks diesel emissions.

Daimler said the recall of the diesel vehicles and the decrease of the demand in Latin America has also been affecting the whole of the compensation.