Audi Warns of Lower Profits, Citing 15% U.S. Tariffs and Restructuring Costs.
German luxury carmaker Audi, part of the Volkswagen Group, has lowered its full-year revenue and profit expectations for 2025, blaming the combined impact of higher U.S. import tariffs and ongoing internal restructuring costs. The revision comes just a day after the United States and the European Union finalized a trade deal setting a new 15% baseline tariff on European auto imports.
In an official statement on Monday, Audi said it now expects revenue of €65–70 billion ($76–82 billion), down from its previous range of €67.5–72.5 billion. The company also slashed its operating margin forecast to 5–7%, down from an earlier projection of 7–9%.
“While the new U.S.-EU agreement brings some clarity, it does not mitigate the fact that our cost base and margin expectations must adjust to a fundamentally different tariff environment,” the company said.
The revised outlook comes in the wake of Sunday’s U.S.-EU trade agreement, which permanently sets a 15% tariff on EU car imports. While this is significantly lower than the previously imposed 27.5%, it’s still far above the 2.5% baseline that existed before the Trump-era tariff escalation.
For Audi, the long-term implications are more severe than for rivals. Unlike BMW or Mercedes-Benz, which have manufacturing plants in the United States, Audi does not have any U.S. production footprint. This makes its vehicles more exposed to import tariffs and cost pressures.
“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 U.S. production footprint,” said Fabio Hoelscher, analyst at Warburg Research.
Audi’s revision mirrors that of its parent company. The Volkswagen Group also cut its 2025 guidance last week after taking a $1.5 billion tariff-related hit in the first half of the year. Industry analysts say the broader auto sector is grappling with a triple threat—rising tariffs, heightened competition from Chinese electric vehicles, and regulatory pressure in Europe to accelerate the transition to electric mobility.
“German carmakers are facing a structural shift. Persistently higher U.S. tariffs, even at 15%, represent a long-term challenge to competitiveness,” noted Pal Skirta, equity analyst at Metzler Equities.
While the new U.S. tariff regime at least brings a level of predictability, Audi must now adapt its global strategy to mitigate risks. According to analysts, in order to stay competitive, it might need to look at local manufacturing alliances, reallocate production capacity worldwide, or even think about changing prices in the US market.
The company’s warning underscores the mounting pressures faced by European automakers in an increasingly protectionist global environment. With rivals gaining ground in both cost efficiencies and U.S. presence, Audi’s ability to navigate this new terrain will be closely watched in the quarters ahead.
