Volkswagen reveals €4bn hit even before Washington threats to tear up the Turnberry Deal’s pledge on car import tax Shares in European carmakers were stuck in reverse on Monday, after the sector became the latest to be caught up in threats into the weekend from US President Donald Trump. The
Michael Hunter
Monday 04 May 2026 12:29 pm
Volkswagen reveals €4bn hit even before Washington threats to tear up the Turnberry Deal’s pledge on car import tax
Shares in European carmakers were stuck in reverse on Monday, after the sector became the latest to be caught up in threats into the weekend from US President Donald Trump.
The White House announced fresh plans to slap fresh tariffs of 25 per cent on cars imported from the region on Friday. When continental stock markets got the first chance to react at the start of trade after the weekend, traders drove the sector sharply south straight away.
Continental, the tyre giant, fell over 5 per cent to €61. Porsche was not far behind, down 2 per cent at €30.40. Mercedes Benz was off by almost 3 per cent at €48.20.
VW pledges to ‘reduce complexity’ of business model after Trump tariff threat
Volkswagen was down 1.5 per cent at €86.60, also under pressure after its earnings missed forecasts late last week. The maker of the renowned Golf and T-Roc marques reported a 2 per cent decline in revenue and its earnings per share were almost 45% lower than forecast.
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The full transcript of VW’s earnings call hit financial newswires on Monday. It was held last week after the numbers were released, but before Trump’s latest threat. In it, the company put a number on the impact so far.
“US tariffs have been introduced and are weighing on our earnings by € 4bn annually,” Arno Antlitz, VW’s chief financial office told analysts.
And with words which rang out across the wider industry, he spoke of plans to “significantly reduce [the] complexity of our business model”.
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Antlitz added: “Geopolitical tensions such as the conflict in the Middle East are worsening the global economic outlook. Against this backdrop, incremental cost measures will not be enough.
“We must fundamentally reshape our business model through structural, lasting improvements.”
The renewed threat of further taxes on European cars exported to the US will add to the problems faced by VW and across the wider sector.
It came after Trump tore up part of the wider deal he reached with the European Union last summer, amid anger in Washington at the length of time taken in Brussels to ratify what is known as the Turnberry Deal. It was famously struck when the president was at his Scottish golf course.
The hike takes the tariff up from the 15 per cent identified in the previous pact.
It was announced on Friday, when much of Europe was observing the May Day public holiday for which London markets stayed shut on Monday.
In response, the European Commission said it would “keep our options open”, according to local media reports.
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