Daimler shocked investors with profit forecast reduction

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Daimler shocked investors with profit forecast reduction

June 21, 2018 - 14:34
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Mercedes-Benz producer Daimler AG shocked its investors on Thursday, when it announced that growing tension in global trade influenced its sales, Reuters reports.

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Mercedes-Benz producer Daimler AG shocked its investors on Thursday, when it announced that growing tension in global trade influenced its sales, Reuters reports.

After news on Daimler's 2018 profit forecast cut was published, auto manufacturer's shares on European market dropped to nine-month low.

Earlier President Trump promised to impose tariffs to import of vehicles saying that trade imbalance represents threat to the national security of the US.

China answered that it will take countermeasures, if US introduces duties to $200 billion of Chinese goods, and this potentially can influence Mercedes-Benz SUV's sales that are imported to China from Alabama. Daimler warned that if such tariffs are imposed, then sales will be hurt and EBIT will be lower this year. According to experts' estimates, company can lose up to 250 million euro.