BERLIN—German auto giant Volkswagen said Wednesday that tariffs on car imports into the United States ordered by President Donald Trump had dragged down its first quarter operating profit.
Europe’s largest auto manufacturer said its operating profit in the first three months of 2025 fell to 2.8 billion euros ($3.1 billion) from 4.6 billion euros in the same period last year.
The result “deviates significantly” from market expectations that operating profit would come in at around four billion euros, Volkswagen said in a statement.
The steep drop was due to one-off impacts which totalled 1.1 billion euros, the group said.
These included 600 million euros in provisions related to the European Union’s emissions targets for auto manufacturers and another 200 million euros to restructure Volkswagen’s struggling software unit.
In addition, Volkswagen said it felt a 300 million euro impact from adjustments in “provisions for the diesel issue” and a write down in the cost of “vehicles in transit in connection with the import duties introduced in the United States at the beginning of April.”
