Germany's Volkswagen on Tuesday reported a sharp drop in annual operating profit and flagged another tough year ahead as the auto giant continues to grapple with U.S. tariffs and competition in China . Europe's biggest carmaker posted 2025 operating profit of 8.9 billion euros ($10.4 billion), down 53% from the year prior, citing U.S. tariffs, currency effects and a strategic shift at Porsche. Analysts had expected annual operating profit to come in at 9.4 billion euros, according to LSEG