June 20, 2018 / 8:39 PM / a month ago

Daimler issues profit warning, blames U.S.-China trade war

(Reuters) - Daimler AG (DAIGn.DE) on Wednesday flagged headwinds for its 2018 earnings mainly due to fewer-than-expected Mercedes-Benz SUV sales and likely higher costs resulting from increased import tariffs for U.S. vehicles into the Chinese market.

FILE PHOTO: The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin, Germany, April 5, 2018. REUTERS/Hannibal Hanschke

The automaker also said the effect of tariffs cannot be fully compensated by reallocating vehicles to other markets.

The company said its profit will also be hurt by a new vehicle certification process, recall of some diesel vehicles and declining demand for its buses in Latin America.

Reporting by Arunima Banerjee in Bengaluru; Editing by Arun Koyyur

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