German automaker Volkswagen's premium brand Audi has today lowered its full-year financial guidance, citing the impact of higher US import tariffs and ongoing restructuring costs.
The Ingolstadt-based company now expects revenue of between €65 billion and €70 billion, down from its previous forecast of €67.5 billion to €72.5 billions. Audi also cut its operating margin forecast to 5% to 7%, compared to the earlier range of 7% to 9%.
Audi said it is still assessing the implications of the trade deal reached between the US and the European Union yesterday.
The agreement set a 15% baseline US tariff on imports from the EU, including cars, which had previously faced customs duties of 27.5%.
"Should the 15% tariff stay in place long-term, it would still put Audi at a competitive disadvantage, because its key peers have a more pronounced US production footprint," said Fabio Hoelscher, an analyst from Warburg Research.
Audi is among the carmakers most exposed to US tariffs as it has no manufacturing facilities in the US.
Although the deal provides clarity on the new tariff regime, enabling better operational and strategic planning, the 15% rate still represents a structural shift from the 2.5% rate before US President Donald Trump took office, said Pal Skirta, equity analyst from Metzler Equities
That leaves German carmakers facing persistently higher US tariffs on their exports and long-term competitiveness challenges, he said.
The Volkswagen Group also cut its full-year guidance on Friday after taking a $1.5-billion tariff hit in the first half of 2025.
Global automakers have booked billions of dollars of losses and some issued profit warnings due to US import tariffs. The European industry is also facing stiffening competition from China, and domestic regulations aimed at speeding up the electric-vehicle transition.
