BERLIN (Euronews) - Volkswagen Group, along with the wider global car industry, is significantly vulnerable to changing U.S. tariffs, mainly because of how globalized auto supply chains currently are.
German automaker Volkswagen AG reported first quarter earnings on Wednesday, with its operating profit plummeting around 37% year-on-year to €2.9 billion, as the company continues to deal with the impact of U.S. tariffs. 
Sales revenue edged up 3% to €78bn in the first quarter of this year, compared to the same period in 2024.
Around 2.1 million vehicles were sold in the first three months of 2025, an increase of 1% from the first quarter of 2024. 
The global share of battery electric vehicle (BEV) deliveries rose from 6% to 10% year-on-year.
In Western Europe, Volkswagen’s share of BEV deliveries jumped from 9% to 19%, with every fourth BEV registered in the first quarter coming from Volkswagen Group. 
The worldwide car sector is significantly vulnerable to the current U.S. tariffs on car imports, especially because of how globalized auto supply chains are. This means that several car manufacturers depend considerably on production facilities outside of the U.S. 
Although Trump altered the current 25% auto tariffs this week to make it simpler for manufacturers to avoid high duties, firms have already been impacted. It may also take more time for the full extent of this tariff reduction to filter through the sector.