Volkswagen has reported their second quarter results and they reveal the company is being hammered by Trump’s tariffs. They’ve cost the firm a staggering $1.5 billion, which is even more than the $1.1 billion hit taken by General Motors.

Even though individual models like the Audi Q6 e-tron have seen sales growth, the lower profit margins on EVs ultimately drags down the company’s overall earnings. Due to its performance in Q2, the VW Group now anticipates its sales revenue for 2025 to match last year’s performance. Previously, the company expected an increase of 5%.

The German automaker said U.S. import duties erased about $1.5 billion from its profit in the first half of the year, and it lowered its forecasts for the full year.