Tariffs Have Cost VW Group $1.5 Billion: 'Negative Impact'

Operating profits dropped 30 percent in the second quarter as US tariffs cost the company $1.5 billion.

Photo by: Volkswagen

By: Anthony Alaniz

Jul 25, 2025 at 2:00pm ET

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Volkswagen Group has reported its second-quarter financial results, and it’s not good news. Operating profits from April to June were down a whopping 29.4 percent, with the automaker facing increased pressure from the US’s new tariffs. They have cost the company €1.3 billion ($1.5 billion at today’s exchange rate) through the first six months of the year.

The automotive giant is facing several hurdles on top of the tariffs, including increased competition in China and regulatory uncertainty as it attempts to lower costs. Porsche sales were down 6.0 percent through the first half of 2025, while Audi sales decreased 5.9 percent over the same period. However, overall sales for the group were up 0.5 percent, increasing from 4.34 to 4.36 million vehicles.

Despite steady sales, VW Group is eager to implement its cost-cutting measures as it assumes the tariffs are not temporary. The automaker said it expects the 27.5 percent tariff to remain for the rest of the year, weighing down the company’s profits. Arno Antlitz, VW Group CFO and COO, said the tariffs and restructuring costs have had a “negative impact.”

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US President Donald Trump has threatened to increase tariffs on Europe to 30 percent, but the automaker is hopeful the European Union and the US will reach a deal that could lower them to 10 to 15 percent. Trump recently struck a deal with Japan to reduce the proposed tariff from 25 to 15 percent, so a lower rate for Europe is possible.

Until then, though, VW Group and other automakers are revealing just how much the tariffs are costing them. General Motors said the extra duties have cost it $1.1billion, while Stellantis reported they have cost the company $300 million.