Volkswagen CEO Hopes To Score A Better Tariff Deal With Trump After Taking A $1.5B Hit: Report

Volkswagen AG (VWAGY) CEO Oliver Blume on Friday reportedly expressed hope that the automaker’s “attractive” investments in the U.S. would help the company score a better tariff deal with President Donald Trump.

Speaking to investors after Volkswagen reported results for the first half of 2025, Blume said he hopes for a well-balanced deal between the U.S. and the European Union.

Volkswagen’s American Depository Receipts were trading 0.7% lower at the time of writing. Stocktwits data showed the sentiment around Volkswagen’s ADRs was in the ‘bullish’ territory.

According to a Reuters report, Blume also expressed optimism that the automaker stands a chance to bag an even better deal through its planned investments in the U.S., in line with President Trump’s calls to manufacture in the country.

“We have a very attractive investment package we will do there,” Blume said, noting that Volkswagen has been in “good discussions” with the Trump administration.

He said he expects President Trump to offer 15% tariffs to Europe, instead of the 25% that is currently imposed on car and other exports to the U.S.

Volkswagen has committed $2 billion to build pickup trucks and sport utility vehicles (SUVs) at a South Carolina factory, in addition to a $5 billion investment in Tesla Inc. rival Rivian Automotive Inc. (RIVN).

This comes after Volkswagen took a €1.3 billion ($1.5 billion) hit during the first half of 2025 due to President Trump’s tariffs.

The largest carmaker in Europe also cut its operating profit margin forecast for the full year to 4% to 5%, down from 5.5% to 6.5% it previously projected. Volkswagen expects sales to remain flat compared to the previous year.

€1 = $1.17

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Also See: Trump Bemoans 'Radical Globalism,' Targets US Tech Companies Building And Hiring In China, India: 'We Want You To Put America First'

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