Volkswagen Group has reported its second-quarter monetary outcomes, and it’s not excellent news. Working earnings from April to June had been down a whopping 29.4 %, with the automaker going through elevated stress from the US’s new tariffs. They’ve value the corporate €1.3 billion ($1.5 billion at right this moment’s trade price) by means of the primary six months of the yr.

The automotive large is going through a number of hurdles on prime of the tariffs, together with elevated competitors in China and regulatory uncertainty because it makes an attempt to decrease prices. Porsche gross sales had been down 6.0 % by means of the primary half of 2025, whereas Audi gross sales decreased 5.9 % over the identical interval. Nonetheless, general gross sales for the group had been up 0.5 %, rising from 4.34 to 4.36 million automobiles.

Regardless of regular gross sales, VW Group is keen to implement its cost-cutting measures because it assumes the tariffs usually are not momentary. The automaker stated it expects the 27.5 % tariff to stay for the remainder of the yr, weighing down the corporate’s earnings. Arno Antlitz, VW Group CFO and COO, stated the tariffs and restructuring prices have had a “detrimental impression.”

US President Donald Trump has threatened to extend tariffs on Europe to 30 %, however the automaker is hopeful the European Union and the US will attain a deal that would decrease them to 10 to fifteen %. Trump not too long ago struck a cope with Japan to scale back the proposed tariff from 25 to fifteen %, so a decrease price for Europe is feasible.

Till then, although, VW Group and different automakers are revealing simply how a lot the tariffs are costing them. Normal Motors stated the additional duties have value it $1.1billion, whereas Stellantis reported they’ve value the corporate $300 million.