Volvo Group reported a steep drop in profit in the first quarter of the year, blaming growing uncertainty over US trade tariffs for weakening sales and disrupting supply chains.
The Swedish truck maker revealed a 30 percent fall in net profit, with revenue hit hard by a slowdown in its key markets.
The decline comes as Volvo navigates a challenging global environment, where shifting trade policies, particularly from the United States, are reshaping how companies move goods and source components. Although Volvo produces all vehicles for the US market domestically, many parts come from abroad, leaving production exposed to rising costs if new tariffs are introduced.
The company said in a statement that rapidly changing trade rules and the possibility of more restrictions are making it harder to plan ahead. It warned that the impact of these trade issues could worsen depending on how policies develop, and that the company might be affected more than its competitors if supply chains are further disrupted.
As a result of the shifting landscape, Volvo has scaled back its expectations for truck sales in the United States. It cut its full-year forecast by 25,000 units, bringing the projected total to 275,000 vehicles. Forecasts for other regions, including Europe and China, remain unchanged for now.
The company reported a quarterly profit of 9.98 billion kronor ($1.03 billion), down from 14.1 billion kronor in the same period last year. While the figure met the expectations of many analysts, it highlights the pressure Volvo is under as trade tensions and policy shifts ripple across the global economy.
Volvo’s outlook reflects a wider concern in the manufacturing sector, where uncertainty over tariffs and trade rules is making it difficult for businesses to make long-term decisions. The company has not predicted how things will unfold but acknowledged that continued turbulence could further strain operations in the coming months.