Tariffs to cost Volkswagen €5.9 billion annually in operating profit, CEO says

Wednesday 06 - 10:45

Tariffs are expected to reduce annual operating profit at German automotive group Volkswagen AG by around €5 billion ($5.9 billion), according to CEO Oliver Blume.

Speaking at an event in Barcelona, Blume said the measures represent a significant financial burden for the company, which remains one of the world’s largest carmakers.

Trade tensions affecting the auto sector

The estimate comes amid ongoing trade tensions between the United States and the European Union, with potential increases in tariffs on vehicle imports adding pressure on global automakers.

Blume did not clarify whether the figure reflects current tariff levels or proposed increases on imported vehicles and trucks.

Industry uncertainty

The automotive sector is closely monitoring evolving trade policies, as higher tariffs could disrupt supply chains, increase production costs, and affect global competitiveness.

European manufacturers, in particular, are exposed to policy changes affecting exports to the U.S. market.

Outlook

Volkswagen continues to navigate a challenging environment shaped by geopolitical tensions, regulatory changes, and the transition toward electric mobility, all of which are reshaping the global automotive industry.