Trump's tariffs bleed Europe's biggest names of hundreds of millions of euros

European companies are racking up massive losses as President Donald Trump pushes forward with 30% tariffs on everything shipped to the U.S. from the European Union starting August 1.

These penalties are already crushing bottom lines, even before the full tariffs go live. European officials are locked in talks with the White House, trying to stop the damage. But for now, the losses keep growing.

Automakers have taken the biggest hit. Trump began by placing a 25% tariff on foreign-made cars and parts in April. That pushed total U.S. tariffs on EU vehicles up to 27.5%, with a fresh hike to 30% coming next month.

On Friday, Volkswagen said it’s already burned through €1.3 billion ($1.53 billion) in extra costs just in the first half of 2025. The company saw its second-quarter operating profit slump and has now cut its full-year projections. The plan on the table: start building Audi cars in the U.S. to avoid future charges.

“There is high uncertainty about further developments with regard to the tariffs, their impact and any reciprocal effects,” said Volkswagen in its latest financial report. The group now forecasts a return on sales of 4% to 5%, lower than its earlier prediction of 5.5% to 6.5%.

Cash flow from its auto division was slashed to between €1 billion and €3 billion, compared to its prior outlook of €2 billion to €5 billion. Net liquidity in the division has also dropped by up to €6 billion. The company based its new estimates on tariffs staying at 27.5%, with a best-case scenario of them falling to 10%.

Tariff damage rips through Europe 

Stellantis, the parent company of Dodge, Fiat, Chrysler, and Peugeot, shocked investors earlier by publishing early earnings numbers showing a €2.3 billion loss for the first half of 2025. The company said it already took a €300 million hit from tariffs and lost production. No other details were offered, but the warning was loud and clear.

Sweden’s Volvo Cars also reported a major drop in Q2 operating profit, citing Trump’s tariffs as the main drag.

Puma, the German sportswear company, dropped its full-year profit forecast entirely on Friday and said it now expects to post an operating loss instead. A few months ago, Puma was aiming for profits between €445 million and €525 million, but those numbers were before the full effect of American trade policy took hold. Puma blamed “dampened sales” from the U.S. market for the reversal.

Remy Cointreau, the French beverage group known for high-end brands like Cointreau and Mount Gay rum, said it would now absorb €35 million in U.S. tariff costs for the 2025–26 fiscal year. That’s €10 million more than the €25 million hit it forecast earlier. The bump comes from rising duties on the company’s cognac exports to the U.S., one of its biggest markets.

Nokia also adjusted its full-year outlook downward on Tuesday. The telecom giant now sees operating profit between €1.6 billion and €2.1 billion, compared to the previous range of €1.9 billion to €2.4 billion.

In a statement, Nokia said, “The largest headwind is currency fluctuations (particularly the weaker USD), an approximately EUR 230 million negative impact. Also, the current tariff landscape is expected to impact full year operating profit by EUR 50 million to EUR 80 million.” That comes out to around $94 million lost.

Traton, a major truck manufacturer in Germany, also revised its guidance on Friday. “We are now anticipating a significant decline for the North American truck market,” the company said. Traton now expects sales to drop up to 10% this year, a steep cut from its original forecast, which ranged from 5% growth to 5% decline.

Revenue outlook has also been slashed to a 10% drop or flat outcome, down from earlier guidance that allowed for growth. Traton’s projections are based on tariffs currently in place and don’t account for possible increases to 50% on Brazilian goods or 30% on EU imports.

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