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Auto giant Volkswagen cuts guidance as U.S. tariffs hit profit hard
GERMANY, JUL 25 – Volkswagen’s operating profit fell 29% in Q2 2025 due to U.S. tariffs and restructuring costs, with sales volume in North America down 16%, the company said.
- On Friday, Germany's Volkswagen lowered its full-year guidance, posting a 29% decline in operating profit.
- Volkswagen assumed tariffs would persist, citing 'high uncertainty', while President Donald Trump threatened to raise duties from August 1, 2025.
- In the second quarter, Volkswagen's sales revenue of €80.8 billion missed analyst expectations of €82.2 billion, while €1.3 billion cost from tariffs added to financial strain.
- Volkswagen's 10-brand group cut its revenue and profit outlook, warning of 'political uncertainty and increased barriers to trade,' and the European Commission has been considering its response.
- Volkswagen and its peers are pressing European trade negotiators to replace the 25% tariff, and forecasts assume U.S. duties of 10% to 27.5%, Volkswagen said.
148 Articles
148 Articles
In the second quarter of 2025, the German VW Group had a significant break in profits. Among other reasons were the poor performance of the expensive brands Audi and Porsche as well as the tariffs in the USA. Only 1.2 billion euros cost the Group the import duties in the United States. Cars there have been charged 27.5 percent customs duties since April. This also allowed sales figures to break in there. In addition, the company reported high co…
Volkswagen takes $1.5B profit dent after Trump’s auto tariffs
President Trump’s auto tariffs have riddled Volkswagen, which said it was hit with a $1.5 billion (1.3 billion euro) profit dent after the onset of the new U.S. trade policies. Volkswagen said the “decline in Operating Result [is] primarily due to high costs from increased U.S. import tariffs (EUR 1.3 billion), provisions for restructuring at…
MyCentralOregon.com
Volkswagen suffers $1.5 billion loss from Trump's tariffs
Matt Cardy/Getty Images (NEW YORK) — President Donald Trump’s tariffs cost German auto giant Volkswagen about $1.5 billion over the first half of 2025, the company said on Friday. Sales in North America plunged 16% due primarily to U.S. tariffs, said Volkswagen, which owns a host of brands including Audi, Lamborghini and Porsche. The company warned of further “challenges” that will arise from “an environment of political uncertainty, expanding t…
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