Driving the news: Volkswagen slashed its full-year guidance after U.S. tariffs cost the German automaker $1.5 billion in the first half of 2025.
For context: Europe's biggest carmaker posted operating profit of 3.83 billion euros versus 5.4 billion euros last year, missing analyst expectations of 3.94 billion euros.
The company cut its 2025 operating return forecast to 4-5% from a previous 5.5-6.5% range.
Restructuring costs added another 700 million euros during the six-month period.
Why it matters: Volkswagen's results show how President Trump's 25% tariffs are hammering European automakers already struggling with Chinese competition and EV transition costs.
What we're watching: Trump's threat to raise EU auto tariffs to 30% starting August 1, which could make Volkswagen's situation even more difficult.
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