April 1 (Reuters) - Mercedes-Benz denied a

report by Bloomberg News on Tuesday which said the carmaker was

considering withdrawing its cheapest models in the U.S. ahead of

an added 25% tariff to be imposed on auto imports.

"This is without any merit. Mercedes-Benz continues to seek

sales growth for its highly desirable vehicles," a Mercedes-Benz

spokesperson said in an emailed statement in response to the

report.

Bloomberg said the carmaker was considering withdrawing more

entry-level models from sale as part of broader tariff

contingency plans.

Industry experts have warned that the planned tariffs, to be

imposed from April 3, are likely to lead to higher prices and

fewer choices of models for consumers, with not enough room in

the margins of more affordable cars targeted at first-time

buyers to absorb the tariff cost.

Mercedes-Benz executives told analysts on an investor call

on Monday that the carmaker was building up inventory levels in

the U.S. at the wholesale level and at dealer lots to get ahead

of tariffs, as it weighed further mitigation measures.