Porsche AG and Mercedes-Benz Group AG will be hit hardest by President Donald Trump’s latest trade salvo, facing a potential €3.4 billion ($3.7 billion) blow from new US tariffs on imported cars.

Trump’s additional 25% duties, to be collected from April 3, could wipe out around a quarter of Porsche and Mercedes’ projected 2026 operating earnings, according to Bloomberg Intelligence. To offset the impact, manufacturers may have to raise prices or shift more production to the US.