Volkswagen is experiencing the impact of President Trump’s tariff policy, with first-half revenue for 2025 at 158.4 billion euros but operating profit down by a third to 6.7 billion euros due to tariffs. Operating result hit by 1.3 billion euros from import tariffs and 700 million euros from restructuring.

VW’s half-year results showed a decline in operating result, attributed to higher sales of lower-margin all-electric models, increased US import tariffs, and restructuring measures. Despite this, VW stock rose in Friday trade, surpassing investor expectations.

Volkswagen adjusted its full-year revenue estimate to match last year’s due to the operating result decline. Operating margin is now predicted to be 4% to 5%, and full-year automotive net cash flow is halved to 1 billion to 3 billion euros.

VW hopes for a balanced trade deal between the US and the EU to allow fair trade. EU and US negotiators are aiming for a 15% tariff on EU goods coming into the US, with current US auto sector tariffs at 25% for foreign-made vehicles.

Read more at Yahoo Finance: Volkswagen stung by tariffs, but trade deal based on US investments may be coming