Volkswagen says tariffs cost $5.9 billion annually, CEO warns

Volkswagen AG has warned that tariffs are significantly impacting its profitability, with Chief Executive Oliver Blume estimating an annual operating profit hit of around €5 billion ($5.88 billion).

Speaking at an event in Barcelona, Blume said the tariffs represent a major financial burden for the German automaker but did not clarify whether the figure reflects current trade measures or potential future increases on vehicle imports, News.Az reports, citing BBC.

The comments come amid growing uncertainty in global automotive trade, including the possibility of higher U.S. tariffs on imports from the European Union. Proposed changes could raise duties on cars and trucks, further increasing cost pressures for European manufacturers.

Volkswagen is among the world’s largest carmakers and is heavily exposed to international trade conditions, with significant production and sales operations across Europe, the United States, and other global markets.

The company’s warning highlights broader concerns in the auto industry, where tariffs, supply chain disruptions, and slowing demand in key markets such as China are adding pressure to earnings.

News.Az 

By Aysel Mammadzada