Volkswagen Reports €1.3B Profit Hit From US Tariffs In H1 2025

Volkswagen has reported a significant financial impact from tariffs imposed by US President Donald Trump, costing the company €1.3 billion ($1.5 billion) in the first half of 2025 and contributing to a 38.5% year-on-year drop in net profit to €4.48 billion ($5.26 billion). The company’s operating profit also fell 33% to €6.7 billion ($7.9 billion), prompting a downward revision of its profit margin forecast to 4%–5% from the earlier 5.5%–6.5%. Sales volume in North America declined by 16%, primarily due to these tariffs, which include a 25% levy on imported cars aimed at boosting US manufacturing. Volkswagen cited additional pressures from higher sales of lower-margin electric vehicles and restructuring costs, including a major job-cutting agreement in Germany to save €15 billion annually by 2030. Other European automakers like Stellantis have also faced steep declines in North American sales, reflecting broader trade tensions and increased barriers impacting the industry. Despite these challenges, Volkswagen’s finance chief stated the company remains on track and at the upper end of expectations if tariffs and restructuring costs are excluded.