German premium carmaker Audi announced on Monday that its net profit plummeted by 37.5 percent year on year in the first half of 2025.
According to its latest financial report, Audi's net profit fell to 1.35 billion euros. The company primarily attributed the sharp decline to significantly higher costs stemming from U.S. auto tariffs that came into effect in early April.
Juergen Rittersberger, Audi's Chief Financial Officer, revealed that the tariffs alone have added around 600 million euros in extra expenses. Since Audi does not operate a manufacturing plant in the United States, it has had to shoulder the full burden of the tariffs, rather than passing the cost on to consumers.
Audi's challenges underscore the broader headwinds facing Germany's export-oriented automotive sector, which has been rocked by escalating trade tensions. As one of the world's largest auto exporters, Germany has been particularly vulnerable since Washington implemented an additional 25-percent tariff on European Union (EU)-manufactured vehicles.
Data from the German Federal Statistical Office shows that German car exports to the United States slumped by 23.5 percent year on year in April and May, despite a 14.7-percent surge in the first quarter. The early-year boost was largely due to front-loaded orders from American buyers rushing to avoid the anticipated tariff hike.
The United States remains Germany's largest automotive trading partner. Last year, the country's top three automakers - Volkswagen, Mercedes-Benz, and BMW - accounted for around 73 percent of all EU car exports to the U.S.
While a weekend agreement between the United States and the European Union capped auto tariffs at 15 percent, a reduction from previously planned punitive levels, the German auto industry remains cautious.
Hildegard Mueller, president of the German Association of the Automotive Industry (VDA), warned on Monday that the revised tariff rate could still cost German carmakers several billion euros annually, exacerbating financial strain at a time of fundamental transformation for the industry.
The VDA has consistently opposed Washington's tariff hikes, warning they would undermine EU exports, disrupt global supply chains, and increase costs for American consumers.
Audi profit slumps as U.S. tariffs squeeze German auto giants
The European Union（EU）and France have reaffirmed their support for Denmark's sovereignty over Greenland as concerns are growing over security in the Arctic following the recent statements made by U.S. President Donald Trump regarding the strategically important island.
Speaking at a press conference in Brussels on Wednesday, European Commission President Ursula von der Leyen said that "Greenland belongs to its people, so it's up to Denmark and Greenland, and only to them, to decide on matters that are concerning Denmark and Greenland."
Noting that the EU is in contact with the Danish government, Von der Leyen stressed that security in the Arctic region is a key issue of concern to the EU.
Also on Wednesday, the European Parliament's political group leaders issued a statement, condemning the remarks made by the Trump administration regarding Greenland and terming them as a "blatant" challenge to international law and to the sovereignty of NATO member Denmark.
They urged the EU institutions to define "concrete and tangible" support for Denmark and Greenland, and stressed that decisions concerning Greenland belong to Denmark and Greenland alone.
"External attempts to alter the status quo are unacceptable," the leaders said.
In a related development, a group of 23 lawmakers sent a letter to European Parliament President Roberta Metsola on Wednesday, emphasizing that if the United States continues to threaten Denmark's autonomous territory, the European Parliament should suspend debates and votes on trade agreements with the United States.
Currently, the European Parliament is deliberating on removing most U.S. import tariffs and maintaining zero-tariff policies on U.S. lobster, with a vote scheduled for January 26 and 27.
Meanwhile, French government spokeswoman Maud Bregeon, citing President Emmanuel Macron, warned on Wednesday that any infringement on Danish sovereignty over Greenland would trigger "unprecedented" consequences.
"If the sovereignty of a European ally were affected, the cascading consequences would be unprecedented," said Bregeon.
"we are closely monitoring the situation and will stand firmly with Denmark to defend its sovereignty," the spokeswoman said.
On the same day, French Prime Minister Sebastien Lecornu noted the need for serious consideration of recent U.S. signals concerning Greenland.
Lecornu reaffirmed France's "full solidarity with Denmark and the legitimate authorities of Greenland," adding that safeguarding the sovereignty of other countries is an important foundation for safeguarding one's own sovereignty.
Furthermore, French Foreign Minister Jean-Noel Barrot announced on Wednesday that France will open a consulate in Greenland on February 6, calling the move a "political signal" over the strategic Danish territory.
The foreign minister said that the U.S. plan of buying Greenland is "absurd" and that this "blackmail" should stop.
He reiterated that France and Europe will continue to support Denmark.
Greenland, the world's largest island, is a self-governing territory within the Kingdom of Denmark, while Denmark retains authority over defense and foreign policy. The United States maintains a military base on the island.
Since his first term, Trump has repeatedly expressed a desire to acquire Greenland. Both Greenland and Denmark have made clear that the island is not for sale. The White House said last week that Trump will not rule out the use of force.
EU, France reaffirm support for Denmark's sovereignty over Greenland
