Mercedes-Benz on Wednesday said it took about a $420 million hit to its car division this year due to auto tariffs. The Wall Street Journal reported that the German automaker is looking at an approximately $1.7 billion decline for the year, based on estimates.

It’s one reason the company has paused some EV deliveries to the States. Notably, Mercedes makes some EVs in the USA already. It has a production facility in Alabama. On top of that, the automaker says that dealer inventory is high right now and demand is weak.