Mercedes-Benz Weighs Lawsuit Over Trump Tariffs
During the recent unveiling of upgraded models of Mercedes-Benz vehicles produced at its Tuscaloosa County plant, U.S. Transportation Secretary Sean Duffy praised President Trump's trade tariffs as resulting in "more manufacturing in America." However, it has come to light that Mercedes‑Benz North America CEO Jason Hoff is not so certain it has been good for his company.
In comments made to the Nashville Tennessean Hoff stated his company is weighing whether to pursue legal action over an estimated $1.2 billion in losses tied to U.S. tariffs. “We are considering it,” Hoff was quoted as saying, “We have not filed anything yet.”
The company recently revealed it is moving production of the next generation GLC from Germany to Alabama in 2027 as a result of tariffs.
The German automaker began reviewing their legal options after the U.S. Supreme Court ruled many tariffs illegal. In February the high Court ruled 6-3 that many of President Trump's tariffs were unlawful. The Court held that the International Emergency Economic Powers Act (IEEPA), used to impose broad tariffs on China, Mexico, Canada, and other countries, did not authorize the President to impose such taxes, shifting that power back to Congress.
Mercedes-Benz came to Vance almost 30 years ago and has produced more than 5 million vehicles since "Job 1" first rolled off the line on Valentine's Day 1997. Since then, the company has grown the plant's workforce from 1,100 to almost 6,000 employees and invested billions of dollars in the facility.
While Mercedes considers its options, another foreign automaker with a large U.S. presence, Toyota, has filed suit to recover over $9.5 billion in tariffs paid.
Mercedes has not revealed a timeline for the final decision on whether or not to file a suit.
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