The German automaker said it expects challenges due to political uncertainty, expanding trade restrictions and geopolitical tensions.

The German automaker said U.S. import duties erased about $1.5 billion from its profit in the first half of the year, and it lowered its forecasts for the full year.

Volkswagen reported a 1.3-billion-euro ($1.5-billion) first-half hit from tariffs and cut its full-year sales and profit margin forecasts in the German carmaker's first assessment of the damage from U.