German car companies are experiencing declining profits and increasing operational pressure due to trade barriers.

Several German automobile manufacturers announced their first quarter financial reports for 2025 on April 30th, local time, showing a significant decline in profits. The German automotive industry is facing multiple challenges, especially intensified by the uncertainty brought by the US tariff policy, which has increased the operational pressure on German car companies. Volkswagen announced on April 30th that its revenue for the first quarter of 2025 increased by nearly 3% year-on-year, but its net profit for the first quarter decreased by almost 41% year-on-year. The report from Volkswagen highlighted increased global economic uncertainty, rising trade barriers, and fluctuating raw material prices as factors putting pressure on the company's profitability.