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Continental AG expects 'high double-digit million euro' tariff hit in second half
Published by Global Banking and Finance Review
Posted on October 1, 2025
1 min readLast updated: January 21, 2026
Home > Headlines > Continental AG expects 'high double-digit million euro' tariff hit in second half
Quick Summary
Continental AG anticipates a major financial hit from U.S. tariffs in H2 2025, with stable tyre sales and a promising winter order book.
Continental AG Anticipates Significant Tariff Impact in H2 2025
FRANKFURT (Reuters) -Continental AG expects a "high double-digit million-euro" hit from U.S. tariffs in the second half of 2025, it said on Wednesday, adding this already factored in a retroactive cut to 15% as of August.
The German automotive supplier, in a summary of a regular call with analysts and investors ahead of quarterly results, also said winter order books looked promising.
Third-quarter sales at the group's key tyre division are expected to remain stable year-on-year, Continental said, adding the profit margin at the unit would come in slightly closer to the lower end of the full-year guidance.
For its tyres division, Continental expects and adjusted operating profit margin of 12.5% to 14.0% in 2025.
($1 = 0.8524 euros)
(Reporting by Christoph Steitz. Editing by Jane Merriman)
Key Takeaways
- •Continental AG expects a significant tariff hit in H2 2025.
- •The impact is due to U.S. tariffs, retroactively cut to 15%.
- •Winter order books for Continental look promising.
- •Tyre division sales expected to remain stable year-on-year.
- •Operating profit margin for tyres projected at 12.5% to 14.0%.
Frequently Asked Questions about Continental AG expects 'high double-digit million euro' tariff hit in second half
1What is a profit margin?
A profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold. It indicates how effectively a company is managing its expenses relative to its sales.
2What is an operating profit margin?
An operating profit margin measures the percentage of revenue left after covering operating expenses. It reflects the efficiency of a company's core business operations.
3What is a retroactive cut?
A retroactive cut refers to a reduction in rates or prices that is applied to a previous period. This means that the change affects transactions or agreements made before the announcement.
4What is year-on-year sales?
Year-on-year sales compare a company's sales figures from one year to the same period in the previous year. This metric helps assess growth or decline over time.
