BASF Lowers 2025 Profit Outlook Amid US Tariffs, Global Uncertainty

German chemical company BASF has lowered its profit forecast for 2025, citing reduced demand due to US tariffs and ongoing geopolitical uncertainties. The company now expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between €7.3 billion and €7.7 billion, down from the previous guidance of €8.0 billion to €8.4 billion. In the second quarter, BASF's sales declined by 2.1% to €15.77 billion, with operating profit falling to €1.77 billion from €1.96 billion the previous year, largely due to lower prices and negative currency effects. Net income also dropped significantly to €80 million from €430 million, impacted by higher taxes and weaker equity contributions. BASF is responding by restructuring to focus on core businesses, cutting costs, and closing smaller production units to boost competitiveness amid a challenging global economy and trade tensions under President Donald Trump's administration. The company plans to release its full half-year results on July 30.