German automaker Volkswagen reported a 37% drop in first-quarter operating profit, citing disruptions caused by U.S. tariffs on the global car industry. The company’s operating profit amounted to 2.9 billion euros ($3.3 billion) for the first three months of 2025, down from the same period last year. Despite a 2.8% increase in sales revenue to 77.6 billion euros, driven by higher vehicle sales outside China, the company warned of challenges ahead due to political uncertainty, trade restrictions, and emissions regulations. Volkswagen anticipates operating return on sales, net cash flow, and net liquidity to align with the lower end of annual forecasts. Shares of Volkswagen have risen nearly 10% year-to-date. The results come amid ongoing uncertainty regarding U.S. President Donald Trump’s auto tariffs, which continue to impact the sector.
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