Volkswagen Hit Hard by Trump's Tariffs
The carmaker was the latest in Europe to report a dent in earnings because of the 25 percent additional tariff imposed by Mr. Trump on cars imported to the United States, following Stellantis and Volvo Cars.
Volkswagen said that tariffs cost it 1.3 billion euros ($1.5 billion) in the first six months of the year, leading to a 33 percent decline in operating profit, to €6.7 billion. The company's revenue was roughly the same as the previous year.
One bright spot was an increase in the number of cars delivered in Europe, where Volkswagen has overtaken Tesla as the market leader in electric vehicles.
Arno Antlitz, Volkswagen's chief financial officer, said it was a 'mixed picture,' citing the contrast between the resonance among car buyers for its newest models and the general challenges that are electric cars are facing, along with the drag of tariffs.
European carmakers have been squeezed since Mr. Trump imposed steep tariffs on imported vehicles. Automakers rely on global supply chains, making them vulnerable to increased import taxes. A 50 percent U.S. tariff on steel and aluminum — essential materials for car production — added further strain.
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