Due to tariffs imposed by US President Donald Trump, Volkswagen reported losses of $1.5 billion in the first half of the year.
The German automaker’s revised full-year sales and profit margin projections were welcomed, according to the automaker.
Volkswagen, the largest car manufacturer in Europe, now anticipates operating profit margins of 4% to 5%, up from the previous projections of 5.5% to 6.5%. Sales for the full-year, which were previously reported to be 5% higher, are expected to be at the same level as those for the year prior.
After the company delayed assessing the damage caused by tariffs in the prior quarter , investors largely anticipated a guidance cut, and they appeared relieved by assurances that the group’s premium brands Audi and Porsche would recover after suffering significant losses in the second quarter.
In response to the tariffs, CEO Oliver Blume advised investors that the company should accelerate its cost-cutting efforts.
“We need to increase our expenditures and accelerate the implementation. We can’t assume that the tariff situation is temporary, Blume said.
Global car manufacturers have recorded billions of dollars in losses, and some have issued profit warnings as a result of US tariffs. China ’s fierce competition, as well as domestic laws intended to speed up the transition to electric vehicles, are also affecting the European industry.
Tariff imposed
This week, Volkswagen is the third automaker to report a profit-gain hit as a result of tariffs. General Motors, based in Michigan, reported that the second quarter’s tariffs cost the company $1.1 billion. For the first six months of 2025, Stellantis, a manufacturer of brands like Jeep and Fiat, reported a $2.7 billion loss.
VW and its rivals are pressuring European trade negotiators to agree to lower the US tariffs that VW has been facing since April.
As part of its efforts to avoid a threatened 30 percent levy starting August 1, EU diplomats have indicated that the bloc may be moving toward a broad 15 percent tariff. This week’s US-Japan agreement gave rise to hopes for a similar agreement in Europe, which increased carmakers’ shares.
Volkswagen’s profit margin, according to Arno Antlitz, will be roughly in the middle of its guidance with a 15 percent tariff-based deal in the style of Japan.
However, he did point out that a deal was in the air. Since we are already in July, he said, “The more we tend to follow the lower end of the guidance,” as the year progresses.
When asked how the company planned to protect its margins from tariffs, Antlitz declined to comment on price increases.
Volkswagen reported a $4.4 billion (3.8 billion euros) operating profit for the quarter that ended on June 30, a 29 percent decrease from the previous year. For the decline in sales of lower-margin all-electric models as well as the increase in restructuring costs, it cited tariffs and restructuring costs.
Volkswagen’s deliveries to the US decreased by almost 10% in the first six months of 2025, despite increasing global deliveries by 1.5 percent in the first six months.
The carmaker’s first-half global sales totaled 18.5 percent of its total sales in North America.
Volkswagen was among the laggards as the automaker’s struggling auto sector wasundergoing a major overhaul to cut more than 35, 000 jobs by the end of the decade, according to car sales data for June.
Porsche and Audi are particularly susceptible to US tariffs because they don’t produce anything there and rely heavily on exports.
Porsche’s operating results decreased by more than 90% to 154 million euros ($181 million) and Audi by 64 percent to 550 million euros ($647 million) in the second quarter.
We anticipate that from 2026 onward, both Audi and Porsche will experience positive momentum as we approach the bottom this year.
VW’s stock is rising despite the losses. It had increased by more than 3 percent since the market opened and by more than 12 percent over the previous five days of trading as of noon in New York (16:00 GMT).
Other automakers’ stocks are rising, as are their stocks, which have also been affected by tariffs. The stock is up 3.9 percent for the day. Only about 0.2% of GM’s increase is expected.
While visiting the Indian Ocean archipelago, Prime Minister Narendra Modi opened talks with the Maldives and announced a $565 million credit line.
Modi’s two-day trip, which started on Friday, aims to strengthen India’s influence-related development partnership with the Maldives, where India and China compete for influence.
The credit line, according to the Indian Prime Minister, is essential to achieving that objective.
He added that the two nations would also finalize a bilateral investment agreement, adding that “this will be used for projects related to infrastructure development in line with the Maldivian people’s priorities.”
Modi, who is visiting the Maldives for the first time since winning a third term last year, also emphasized that India will continue to serve as the “first responder” for the nation, which has a population of about 525, 000.
He declared that India would continue to assist the Maldives in improving its defenses.
Our common objectives are “peace, stability, and prosperity in the Indian Ocean region.”
Following the 2023 election of President Mohamed Muizzu on a pro-Indian platform, India was concerned that the Maldives was heading for China’s orbit.
Muizzu has resisted tradition by choosing to travel to China before visiting India since becoming president.
A small group of Indian military personnel who operated two search-and-rescue helicopters and a fixed-wing reconnaissance aircraft based in the archipelago were also helped by him.
Before India helped stop the $7.5bn economy from defaulting on its debt as the Maldives struggled to attract tourists to its white-sand beaches and luxurious resorts, Muizzu’s actions briefly strained relations with New Delhi.
Since then, Muizzu has visited India and toned down his anti-Indian rhetoric. In New Delhi, he also met Modi twice last year, with both leaders promising to start a “new chapter” in bilateral relations.
The credit line from India will be used, according to Muizzu’s statement on Friday, to strengthen Maldives’ security forces as well as to enhance housing, healthcare, and education.
He said that India’s continued support for the Maldives through the export of essential commodities is a crucial component of our bilateral cooperation.
After attending the nation’s celebrations on its 60th anniversary in Male, Modi is scheduled to leave the archipel on Saturday.
Donald Trump, the president of the United States, has suggested that Hamas is refusing to accept a truce in Gaza because it fears what will happen after all the Israeli prisoners are free.
Trump’s remarks at the White House on Friday imply that Israel and the US are more than willing to negotiate a temporary truce to release Israeli prisoners from Gaza.
The US president told reporters, “We’re down to the last hostages, and they know what happens after you get the last hostages.” They really didn’t want to make a deal, they said, “principally because of that.”
Trump claimed that the Palestinian organization will be “hunted down” and that it is solely responsible for the ceasefire talks’ apparent collapse.
“Hamas didn’t want to make a deal really,” he said. They “want to die,” he said, “and it’s very, very bad.”
Washington was stifling its participation in the negotiations on Thursday, according to Trump’s Middle East envoy Steve Witkoff, who accused Hamas of showing “a lack of desire to reach a ceasefire.”
Israel also stated that it had withdrew its negotiators from Qatar, where the ceasefire talks were taking place.
Hamas expressed shock at the US position, claiming that it had pledged “sincere support to the success of the mediation’s efforts” to reach a deal.
Additionally, the group claimed that Qatar and Egypt, the mediators, applauded its “constructive and positive” position.
Talks have been going on for a 60-day truce that would allow Israel to stop bombarding Palestinian territory and release 10 of its captives in Gaza.
Hamas has vowed to seek a permanent ceasefire.
According to Witkoff, the truce “will bring about a lasting peace in Gaza.”
However, Israeli officials have repeatedly outlined their intention to return to fighting and to have all Palestinians taken out of Gaza once they have been released.
In order to prepare for their removal from the territory altogether, Israeli Defense Minister Israel Katz has stated that the nation would use the truce to transport hundreds of thousands of Palestinians to a camp in southern Gaza.
Despite the ceasefire talks, Israeli Prime Minister Benjamin Netanyahu claimed earlier this month that Israel “still has to finish the job in Gaza.”
Legal experts claim that Trump’s demand in February amounts to ethnic cleansing and creating a “Riviera of the Middle East” in comparison to the depopulation of Gaza.
In what some claim is an attempt to make Gaza unlivable, Israel has systematically flattened large portions of the country using bombs, explosives, and bulldozers.
However, Netanyahu has argued that Palestinians’ departure will be “voluntary.”
However, human rights experts cautioned against the existence of a real choice for those who are threatened by bombardment and hunger.
Trump made the suggestion on Thursday that Gaza is going to see more violence, claiming that Israel will have to “fight” it.
They will need to “clean it up,” they said. You’ll have to get rid of it, he said.
Trump refutes French recognition of Palestine.
The US president’s remarks come as Gaza continues to suffer from deadly hunger as a result of an Israeli blockade that prevents the flow of essential supplies into the area.
Even close allies of the US and Israel have condemned the Israeli-imposed starvation in Gaza.
The denial of humanitarian assistance to Gaza was described as a “violation of international law,” according to Canadian Prime Minister Mark Carney on Thursday.
At the UN General Assembly in September, French President Emmanuel Macron added that his nation would support the recognition of Palestine as a state.
Trump refuted his French counterpart’s statement, saying it “does not carry any weight” before flying to the United Kingdom on Friday.
Lionel Messi and Jordi Alba, according to their coach, have not been disciplined for missing Wednesday’s MLS All-Star Game in Austin, Texas.
Fans and the media chose both players for the showcase, but neither did in the MLS squad’s 3-1 victory over Mexico’s Liga MX All-Stars.
Players who choose not to participate in the All-Star Game without providing an approved medical reason are subject to a one-game suspension, per league rules.
According to ESPN, Messi “showed normal fatigue from the number of games and minutes he’s been playing” and that his team “played the most games so far this semester by far” on Friday.
Players always experience discomfort, especially when they play every three days, look. But luckily, Mascherano is back today, Mascherano said on Friday. Let’s hope he can work with the other players to prepare for the game tomorrow. There is no [sanction] we have received.
Saturday night at Chase Stadium in Fort Lauderdale, Florida, Inter Miami takes on FC Cincinnati.
Messi, 38, and Alba, 36, both said Mascherano would be available for the game based on their fitness levels.
Messi has 18 goals and 10 assists in 17 league games this year, which ranks him as the top scorer in the MLS. Additionally, the Argentine forward started four games for the FIFA Club World Cup and six for the CONCACAF Champions Cup.
In 18 MLS games, Alba has one goal and eight assists. The Spanish defender started one match for the Club World Cup and seven for the Champions Cup.
After five men were deported from the US to the tiny kingdom of Eswatini, activists and human rights organizations have accused US President Donald Trump of using African nations as a “dumping ground” for criminals he wants to deport.
On July 16, a deportation flight carrying five men from Vietnam, Jamaica, Laos, Cuba and Yemen, all of whom have been convicted of crimes in the US, landed in Eswatini, the last African country governed by a monarch with absolute power. Trump’s “third country” plan to deport people whose own nations are unwilling to repatriate them was a result of the deportations.
The US deported criminals to Eswatini, which is the second African nation. Also this month, Washington said it had sent eight “uniquely barbaric monsters” to conflict-torn South Sudan.
The US Supreme Court granted foreign nationals’ deportations to unrelated third countries last month. Since then, human rights violations have been alarmingly common among international organizations and civil society organizations in Africa.
“The US government sees us as a criminal dumpsite and undermines Emaswati]the people of Eswatini]”, Wandile Dludlu, a pro-democracy activist and deputy president of the country’s largest opposition movement, the People’s United Democratic Movement (PUDEMO), told Al Jazeera. PUDEMO is a political party that is not affiliated with Eswatini.
Does Trump intend to “dumping ground” detainees in African countries?
Who are the five men Trump deported to Eswatini?
The assistant secretary of the US Department of Homeland Security, Tricia McLaughlin, claimed this month that “individuals were so uniquely barbaric that their home countries refused to take them back.”
She wrote in a post on X that “These depraved monsters have been terrorizing American communities, but thanks to [Trump] they are off American soil.”
NEW: a safe third country deportation flight to Eswatini in Southern Africa has landed— This flight took individuals so uniquely barbaric that their home countries refused to take them back.
These evil monsters have been terrorizing American neighborhoods for years, but thanks to @POTUS… pic. twitter.com/TsanIX8H4T
McLaughlin confirmed that the five were Yemeni nationals and not from Vietnam, Jamaica, Laos, Cuba, or Vietnam.
She claimed that all of her convicted criminals had served prison sentences as long as 25 years and were all guilty of crimes including child rape, murder, robbery, gang ties, and homicides.
US Department of Homeland Security Assistant Secretary Tricia McLaughlin confirmed the five deported men are from Vietnam, Jamaica, Laos, Cuba and Yemen]Handout/@TriciaOhio/X]
What kind of agreement has Eswatini and the Trump administration reached?
Trump won the presidential election last year with the help of a campaign that focused on mass deportations.
Since then, the Trump administration has been negotiating a third-country deportation agreement with several nations, including Eswatini, which will allow it to deport foreign nationals convicted of serious crimes who have been rejected by their home countries.
The agreement between Eswatini and the US reportedly came about after “months of robust high-level engagements,” according to the kingdom’s acting spokesperson Thabile Mdluli, whose details are still classified.
Additionally, Mdluli added that the kingdom would work with the White House and the IOM to “enable the transit of these prisoners to their countries of origin.”
However, “there are no timelines at present” for their repatriation, she told CNN in an interview.
Some African governments are accepting deported detainees as a “goodwill gesture, aimed at strengthening US ties and be in]Trump’s] good books,” according to Daniel Akech, a senior analyst for South Sudan at the International Crisis Group.
He added, however, that they “implicitly ignored concerns about human rights and the lack of transparency regarding the safety of third nationals.”
Akech said the African Union and the United Nations could partner with receiving countries to monitor the process of US deportations “to ensure that the deportees are protected and their living conditions are good”.
According to Akech, “the areas where these deportees remain could face conflicts,” and this would require plans to ensure their safety or safe transfer either domestically or internationally.
On October 14, 2023, Eswatini’s King Mswati III, center, performs the Umhlanga Reed Dance at the Mbangweni Royal Residence. [Marco Longari/AFP]
What do we know about Eswatini?
One of the few nations in the region still has absolute monarchies, including King Mswati III, who is currently King Mswati III, is the tiny landlocked nation bordering South Africa and Mozambique.
Swaziland was the name of the nation under British colonial rule, which ended in 1968. It was renamed by the king in 2018.
Mswati succeeded his father, Sobhuza II, who passed away in 1982, and he has been in charge of Eswatini since 1986 when he turned 18 years old.
Mswati, who is now 57, has been criticized for stifling political dissention. The World Bank said more than half of Eswatini’s 1.2 million people live on less than $4 a day.
According to an Associated Press report, the king is alleged to have 11 wives and be worth between $200 million and $500 million.
Agriculture, small-scale manufacturing, and the sugar industry, which make up the majority of Eswatini’s export revenues, are the mainstays of the country’s economy. The country is one of Africa’s largest sugar producers, exporting roughly $477m of sugar and sugar-related products in 2023 – about 23 percent of its total exports.
What are Eswatinis’ opinions of Trump’s deportation plan?
There is a lot of anger about it, according to regional leaders and activists.
Dludlu described the “dumping” of convicted criminals as “distasteful and fraudulent conduct by His Majesty and his government in the face of the unprecedented public healthcare crisis” in the country.
According to Dludlu, “This is attracting indignation from Emaswati for naked abuse of their sovereignty and territorial integrity as a nation and people.”
When other countries seek fair trade, high-quality education, and other meaningful exchanges, he argued that PUDEMO and its supporters want the government and the US to “reverse this absurd and illegal yet irrational decision to take criminals from the US.”
Dludlu further noted that the incoming deportees will only add to the “overcrowded prison facilities that are poorly run]in] dilapidated and outdated infrastructure”. Eswatini prisons are reportedly operating at more than 170 percent of their capacity, according to figures.
The Eswatini government has been accused of accepting the five convicted criminals, by civil society organizations like the Southern Africa Litigation Centre, the Swaziland Rural Women’s Assembly, and other regional NGOs.
They argued that the detentions violate Eswatini’s own Correctional Services Act and other domestic laws and said there is no lawful basis for imprisoning foreign nationals who lack legal ties to the country.
There are several questions lingering over the agreement reached with the Trump administration, according to Chris Ogunmodede, a foreign affairs analyst well-versed in African diplomatic circles. These range from the legal justification for the deportees’ transfers, whether they were informed and given consular access, how long their detentions lasted, and the terms of the US-based arrangement.
He added that Eswatini and South Sudan are “smaller economies with no geopolitical weight” on which White House officials could easily “impose their will”.
What is the government’s position on Eswatini?
The government assured the people of the kingdom that the arrival of five US deportees “poses no security threat to the Nation,” Mdluli said in a statement.
It stated that the five prisoners would be housed in correctional facilities within isolated units “where similar offenders are kept”.
She stated that the bilateral discussions with the White House “have taken into account every possible angle, including thorough risk assessments and careful consideration for the safety and security of citizens.”
With which other African countries will Trump try to reach deportation agreements?
In addition to Eswatini and South Sudan, Trump has discussed third-country deportation deals with the leaders of Liberia, Senegal, Guinea-Bissau, Mauritania and Gabon during a summit at the White House this month.
Trump reportedly discussed immigration, including whether or not nations should accept the deportation of citizens from third countries.
The Trump administration hoped to forge agreements with “many countries,” according to Tom Homan, the border tsar for the president.
“If there is a significant public threat or national security threat, there’s one thing for sure: They’re not walking the streets of this country. He said, “We’re going to find a third, safe nation to send them to,” and we’re doing it.
Nigeria and Rwanda both confirmed they are in talks to reach a similar deal, while Rwanda said it had rejected pressure to reach a deal.
US President Donald Trump hosts a summit of African leaders from Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal at the White House in Washington, DC, on July 9, 2025]Kevin Lamarque/Reuters]
Which other nations have enacted deportation laws for citizens of third countries?
United Kingdom
The UK has explored third-country deportation policies as part of its efforts to manage irregular migration and asylum claims. In 2022, the UK partnered with Rwanda and planned to relocate asylum seekers there for processing, with the UK agreeing to give the country 370 million pounds ($497 million) in development funding over the course of five years.
Given Rwanda’s inadequate asylum system and human rights concerns, the UK Supreme Court first rejected the plan in November 2023 for violating international human rights standards. In response, the government enacted the Safety of Rwanda (Asylum and Immigration) Act 2024, which declared Rwanda a “safe country” and limited legal challenges to the policy.
The Rwanda scheme was quickly ended by Prime Minister Keir Starmer after the Labour Party won the election in July 2024.
Starmer, however, claimed in May that he was speaking with “a number of nations” about “return hubs” where undocumented immigrants could be sent.
Israel
Similarly, Israel implemented a third-country deportation arrangement targeting African asylum seekers by sending them to countries like Rwanda and Uganda from 2013 to 2018.
Those who agreed to leave received a $3,500 offer from the government.
However, Israel’s Supreme Court ultimately ended the policy, declaring it to be unlawful in part because the receiving nations had failed to uphold international standards set forth in the Refugee Convention.
Ogunmodede said the UK’s and Israel’s deals with African nations amounted to the “outsourcing of the migration problem”.
US President Donald Trump says he had a positive meeting with Federal Reserve Chair Jerome Powell and gained the impression that the central bank’s head might be ready to lower interest rates.
The two men met on Thursday when Trump made a rare visit to the US central bank to tour its ongoing renovation of two buildings at its headquarters in Washington, which the White House has criticised as costing too much.
Trump clashed with Powell during his visit and criticised the cost of renovating two historic buildings at its headquarters, and they sparred over the project’s actual price tag.
“We had a very good meeting … I think we had a very good meeting on interest rates,” Trump told reporters on Friday.
The central bank said on Friday it was “grateful” for Trump’s encouragement to complete the renovation of its buildings in Washington and that it “looked forward” to seeing the project through to completion.
Trump, who called Powell a “numbskull” earlier this week for failing to heed the White House’s demand for a large reduction in borrowing costs, said he did not intend to fire Powell, as he has frequently suggested he would.
On Friday, Trump called Powell a “very good man” when speaking to reporters.
Rather than lowering interest rates, economists widely expect the central bank to leave its benchmark interest rate in the 4.25 percent – 4.50 percent range at the conclusion of a two-day policy meeting next week.
Tariffs stall rate cuts
The central bank has held rates steady since December, and earlier this year, Powell said that if it were not for Trump’s imposed tariffs and the economic uncertainty it has caused, the central bank might have been ready to lower rates by now.
The visit comes as President Trump is expected to meet UK Prime Minister Keir Starmer, where the two sides could potentially approve an already announced trade deal, as trade negotiations with Canada stall. Trump said his administration could set a tariff rate unilaterally on Canada.
“We haven’t really had a lot of luck with Canada. I think Canada could be one where there’s just a tariff, not really a negotiation.”
Trump also said there is a 50-percent chance of Washington being able to strike a deal with the European Union to reduce import tariffs.
“I would say that we have a 50/50 chance, maybe less than that, but a 50/50 chance of making a deal with the EU,” Trump told reporters at the White House.
The president has been pressing his case for reduced interest rates, including falsely claiming, “We’ve wiped out inflation.” Inflation actually rose last month to 2.7 percent.
Despite continued pressure from the Trump administration, Powell has long maintained that the central bank must preserve its independence from the White House.
