Audi, the premium brand of German automaker Volkswagen, lowered its full-year revenue and margin forecasts on Monday, citing increased U.S. import tariffs and the financial burden of ongoing restructuring.
The Ingolstadt-based company now anticipates annual revenue between 65 billion and 70 billion euros ($76 billion–$82 billion), down from its earlier projection of 67.5 billion to 72.5 billion euros. Audi also trimmed its operating margin guidance to a range of 5% to 7%, compared with the previous estimate of 7% to 9%.
The revised outlook follows the trade agreement reached between the United States and the European Union on Sunday, which set a new baseline U.S. tariff of 15% on EU imports, including vehicles. While the new rate offers more clarity for long-term planning, it still marks a significant shift from the 2.5% tariff that was in place prior to 2017.
Audi is among the most exposed European carmakers to U.S. tariffs, as it lacks domestic manufacturing capacity in the United States. The company is currently evaluating the full impact of the new trade framework.
The Volkswagen Group also downgraded its full-year forecast last week after incurring a $1.5 billion tariff-related cost in the first half of 2025.
Global automakers continue to face headwinds from higher U.S. tariffs, rising competitive pressure from Chinese manufacturers, and domestic regulatory shifts aimed at accelerating the transition to electric vehicles.