Luxury automakers Mercedes-Benz and Porsche have slashed their forecasts for earnings for 2025, citing the joint effect of President Trump’s tariffs and slowing demand in China.

According to the New York Times, Mercedes said on July 30 that revenue in 2025 would come in “significantly below” 2024. The company also lowered its projection for profit margins.

The automaker reported its profits fell by more than half in the first half of the year, with vehicle sales falling 6% in the U.S., and 14% 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 July 30, the third time this year the automaker has scaled back its forecast. The company said its profit fell roughly two-thirds in the first half of the year, hit by 400 million euros ($462 million) in tariff costs.

Porsche is especially exposed to U.S. tariffs, because all of its vehicles are produced in Europe and shipped from there. The company is also under pressure from rivals in China, where demand for its high-end cars has collapsed.

Porsche’s deliveries in North America rose in the first six months of the year, in part because dealers accelerated orders to get ahead of tariffs and Porsche offered to keep prices steady despite the levies. Its sales in China, however, fell nearly 30%, due to “intense competition.”

The news comes on the heels of Ford Motor Co.'s announcement that its profit will fall as much as 36% this year as Trump’s tariffs reduce earnings by about $2 billion, and General Motors Co. said tariffs cut its second-quarter earnings by $1.1 billion, part of an expected $4 billion to $5 billion impact GM expects for the full-year.

Read More: Ford Sees Steep Profit Drop With Tariff Tab Rising to $2B

On July 27, the EU agreed to a trade deal with the United States that would reduce tariffs on imported cars to 15%, which Mercedes and Porsche incorporated into their forecast cuts. American cars shipped to Europe would face no duties under the deal.