Germany’s leading luxury automakers are sharply scaling back expectations for the rest of the year.

The luxury automakers Mercedes-Benz and Porsche slashed their forecasts for earnings this year as the double whammy of President Trump’s tariffs and slowing demand in China hit the German companies hard.

Mercedes said on Wednesday that revenue in 2025 would come in “significantly below” last year. The company also lowered its projection for profit margins.

The automaker reported a plunge in profit in the first half of the year, more than halving from the year before. Its vehicle sales fell 6 percent in the United States and 14 percent in China over that period, “primarily due to tariff policy,” the company said.

Porsche, which is controlled by Volkswagen, also cut its earnings outlook on Wednesday. It was the third time this year that the automaker scaled back its forecast. The company said its profit plunged roughly two-thirds in the