Volkswagen has reported a significant 37% drop in first-quarter profit, attributing some of the downturn to uncertainties surrounding Trump tariffs on imported vehicles. This trend is mirrored across the industry, with both Stellantis and Mercedes-Benz also suspending profit guidance due to tariff-related concerns. The German automotive sector is feeling the strain, with Mercedes-Benz experiencing a 43% profit drop as sales decline, leading them to withdraw earnings guidance. The ongoing trade tensions and rising electric vehicle costs are seen as additional challenges that may impact profitability. As a result, major car manufacturers including Volkswagen, Mercedes-Benz, and Stellantis are projecting a cautious outlook amid this complex market environment.