The guidance update comes after the U.S. and EU on Sunday agreed a deal that will apply a 15% tariff to cars shipped from Europe to the U.S. That marks a sharp drop from the 27.5% European automakers have been paying since April, but still represents a hefty increase from the 2.5% that applied before President Trump began his second term in office.

Mercedes-Benz Group AG and Porsche AG scaled back their profit expectations for the year, underscoring the toll President Donald Trump’s trade war is taking on some of Europe’s largest luxury-car makers.