Volkswagen's first-quarter profit sharply decreased by 40%, and the outlook was clouded by United States tariff policies.

Volkswagen's first-quarter profit fell sharply by 40%, as rising manufacturing costs eroded profit margins and U.S. tariff measures cast a shadow over the German automaker's prospects. The company said on Wednesday that pretax profit for the three months to March was 3.1 billion euros, down from 5.1 billion euros in the same period last year. The group's operating profit margin fell from 6% to 3.7%.