Mercedes-Benz has announced it will temporarily halt shipments of its EQ electric vehicle lineup to the U.S. and reduce prices on upcoming models due to softening demand and high dealer inventories.
The decision follows President Donald Trump’s recent spending bill, which accelerated the phaseout of EV tax credits, prompting analysts to downgrade their forecasts for the U.S. electric vehicle market in 2025.
During this pause, Mercedes will sell off existing U.S. inventory and continue supplying EQ vehicles from its Tuscaloosa, Alabama factory.
The automaker also revealed plans to lower the starting prices of its EQE and EQS sedans and SUVs by 4% to 16%, beginning with the 2026 models (excluding delivery fees). 
CEO Ola Kaellenius acknowledged the current slowdown but remains optimistic about long-term EV adoption in the U.S., stating:
“We don’t believe U.S. BEV demand will drop to zero. We expect gradual growth over time.”
Earlier this year, Mercedes confirmed a strategic shift to prioritize combustion engine vehicles over EVs in its future lineup. By the end of 2027, it plans to launch 19 new petrol/diesel models and 17 battery electric vehicles, following a 25% decline in BEV sales last year.
