Volkswagen takes 1.3-bn-euro hit from Trump tariffs

Frankfurt, Germany: German auto giant Volkswagen said Friday that tariffs imposed by US President Donald Trump had cost it 1.3 billion euros in the fi...

Frankfurt, Germany: German auto giant Volkswagen said Friday that tariffs imposed by US President Donald Trump had cost it 1.3 billion euros in the first half of the year as it reported falling profit.

Overall net profit fell 38.5 percent year-on-year during the period to hit 4.48 billion euros ($5.26 billion).

Higher sales of lower-margin electric vehicles (EVs) as well as restructuring costs hit the result in addition to the tariffs, Volkswagen said.

Finance chief Arno Antlitz said Volkswagen was nevertheless "on the right track" and that performance was at the "upper end of expectations", if tariffs and restructuring costs are excluded.

But he warned on an earnings call that "tariffs are likely to remain a permanent burden" and said Volkswagen would have to redouble cost-cutting efforts "to offset" the effect.