Mercedes-Benz is taking several steps to deal with President Donald Trump’s 25% tariffs impacting foreign automotive production.

According to Bloomberg, the German automaker is weighing whether to shift some manufacturing to the U.S. to avoid additional costs from the tariffs.

Meanwhile, there will be no increase in sticker price to 2025 model-year vehicles for U.S. customers.

“We’re still assessing the impacts of these tariffs,” Jörg Burzer, the automaker’s production chief, said during a company event in Germany last week. “We have made some plans, but flexibility is absolutely key.”

The Wall Street Journal previously reported Mercedes could relocate its GLC SUV to the U.S., which is currently made in Bremen, Germany, but the move could cause political problems at home.

The company’s GLE and GLS SUVs assembled in Tuscaloosa use engines and transmissions from Europe, which would be impacted by the tariffs.

Mercedes-Benz could see a total cost from tariffs of an estimated $1.7 billion this year, according to brokerage Bernstein, which is 14% of expected operating profit.

Parts account for about a third of the potential tariff impact.

Apart from production, Mercedes-Benz executives are saying the automaker will absorb the 25% tariff on 2025 model year units, according to a statement issued by the automaker to Automotive News.

“We continue to monitor the situation closely, are evaluating all options, and will adjust to changing market conditions and the competitive landscape if needed,” Mercedes-Benz spokesperson Michael Minielly said in Road & Track.

Mercedes manufactures the GLE-Class and GLS-Class sport-utility vehicles, and the electric EQE and EQS SUVs, in Alabama.

The GLE and GLS alone made up more than 96,000 of the brand’s 324,528 passenger vehicles sold domestically in 2024. The 25% tariff hit will affect a smaller portion of vehicles than other European automakers.