Volkswagen reports €1.07 billion quarterly loss amid tariffs and weak EV demand

German automaker Volkswagen (VW) has posted its first quarterly loss since the COVID-19 pandemic, reporting a net loss of €1.07 billion between July and September, the company announced in Wolfsburg on Wednesday.

According to Deutsche Welle, VW Chief Financial Officer Arno Antlitz attributed the loss mainly to higher customs tariffs and issues at subsidiary Porsche, which recently adjusted its electric vehicle strategy following weak demand.

Antlitz noted that without these negative factors, VW’s operating margin would have stood at 5.4%.

Volkswagen estimates that U.S. President Donald Trump’s tariff policy costs the company around €5 billion annually. Under the latest EU–U.S. trade agreement, car exports from Europe are now subject to a 15% import duty, up from 2.5% before the trade war.