Mercedes-Benz has reported a 17% decrease in Q1 earnings before interest and tax (EBIT) to €1.9 billion ($2.22 billion), higher than the average analyst estimate of €2.6 billion. The company has been dealing with rising tariffs, China issues, and a transition to electric vehicles. It has been focusing on redundancies and cost cuts to stem losses while developing new models. The adjusted return on sales for the core cars division was 4.1%, within a full-year target of between $3 and 5%, down from 7.3% in the same quarter.