Volkswagen lost $1.5 billion due to import duties: the company lowered its financial forecast
Photo: EPA

German automotive giant Volkswagen lost €1.3 billion ($1.5 billion) in the first half of 2025 due to import tariffs imposed by the US president Donald Trump in the spring. About writes The Wall Street Journal.

In addition, the company spent €700 million on internal restructuring of Audi, Volkswagen and the IT company Cariad.

The losses resulted in a reduction in Volkswagen's financial forecast for 2025. According to the company's estimates, operating profit may fall to 4-5% instead of the previously planned 5.5-6.5%.

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Volkswagen also predicts that net cash flow will decline from EUR 2-5 billion to EUR 1-3 billion, and liquidity will amount to EUR 31-33 billion instead of the expected EUR 34-37 billion.

The forecast is based on two scenarios:

  • if the US duties remain at 27.5%, the results will be closer to the lower limit;
  • if US duties are reduced to 10%, financial performance may improve.

The company also said that the current decline in profits is caused not only by duties, but also by a drop in demand for expensive models and higher sales of less profitable electric vehicles.

In addition, the company is under pressure from competition from China, stringent environmental requirements, and instability in global markets.

In the second quarter, Volkswagen's profit fell by almost a third to €3.83 billion, while sales fell by 3% to €80.8 billion.

  • on July 15, The Guardian wrote that one of the world's largest ports turned into a car fleet because of Trump's tariffs.