Volkswagen has lowered its full-year financial guidance for 2025 following a $1.5 billion profit hit in the first half of the year due to U.S. tariffs imposed during the Trump administration. The German automaker now expects flat revenues and an operating profit margin of 4–5%, down from the previously forecast 5.5–6.5%. The tariffs have particularly affected the Audi and Porsche brands, contributing to margin pressure alongside restructuring costs and weaker profits from its China joint ventures. Volkswagen's second-quarter operating profit fell approximately 29% year-on-year to €3.83 billion, with revenues at €80.8 billion missing estimates. Audi separately cut its full-year outlook, citing the combined impact of tariffs and restructuring expenses. Ford also reported a worsening impact from tariffs, increasing its expected tariff-related earnings hit to about $2 billion for 2025, which is higher than earlier estimates. This has led Ford to revise its profit forecast downward by as much as 36%, with a Q2 tariff impact of $800 million and adjusted full-year earnings guidance now between $6.5 billion and $7.5 billion, down from $7 billion to $8.5 billion. Denso Corporation, a key automotive supplier, reported an $84 million operating profit loss in Q2 due to tariffs. Meanwhile, BMW maintained its guidance despite a profit decline attributed in part to the tariffs. These developments highlight the ongoing financial pressures on major automakers from U.S. trade policies and associated costs.