Trump tariffs reduced Continental's profits

In the second quarter of 2025, the tire division of Continental saw a 2% decline in sales to 3.3 billion euros, with operating profit also decreasing slightly, which the company attributes to unfavorable currency fluctuations, new US import tariffs, and weak demand in the European market.

It is reported that the new import tariffs introduced by the administration of US President Donald Trump reduced the revenue of Continental's tire business by an eight-figure sum in euros due to the company's insufficiently prompt measures to mitigate their impact. At the same time, the 15% basic tariff on imports from the EU, agreed upon in July, will reduce the negative consequences and "give the company more room for maneuver," according to Reuters, citing Continental's financial director, Wolfgang Schäfer, who added that the conglomerate confirms its forecast for the entire 2025 year.

Continental's consolidated sales in the second quarter of 2025 were 9.6 billion euros, compared to 10 billion euros in the same period last year, while net profit increased by 66% to 506 million euros.

Last year, North America accounted for more than 25% of Continental's revenue, and since the beginning of 2025, the euro has strengthened by about 12% against the dollar, leading to a decline in the company's revenue in the US market.

Currently, Continental is in the process of transforming two of its three divisions into independent structures, and in the future, it will become a company specializing exclusively in the production of tires. Continental hopes that the restructuring will enable the company to better cope with the challenges in the unstable market, which is affected by, among other things, the new US tariffs.