Mercedes-Benz Group AG is contemplating the possibility of removing its cheaper cars from the US market due to President Donald Trump's proposed auto tariffs. The German car manufacturer is considering reducing sales of entry-level models like the small GLA SUV as part of its tariff contingency plans. The decision is pending as the 25% tariffs are set to be implemented. Mercedes has not finalized its decision and may change direction based on how the tariffs are enforced. The lack of clear guidance from the government is causing uncertainty and frustration among executives. The company's goal is to maximize sales in the US market. Mercedes, like other car manufacturers, is dealing with the challenges of a growing trade war that could impact sales and supply chains. While Aston Martin and Ferrari plan to increase prices in the US, Volkswagen is looking into expanding local production. Stellantis NV's Chairman met with Trump to advocate for automakers' interests. By reducing exposure to the entry-level premium market, Mercedes hopes to avoid tariffs on its less profitable vehicles. This strategy could protect thin profit margins from turning into losses, especially for models like the GLA priced at approximately $43,000. The move may also steer customers towards higher-end models. Despite the challenges, the US remains a critical market for Mercedes, particularly for its more profitable larger SUVs. Under CEO Ola Källenius, Mercedes has been prioritizing higher-end models like the S-Class sedan over compact cars to enhance profitability. The company has adjusted its strategy by delaying the shift to exclusively producing electric vehicles and continuing investment in combustion-engine cars due to changes in consumer preferences, competition, and trade tensions affecting profit margins.