Volkswagen said Friday year-over-year operating profit fell by $1.84 billion in the second quarter as the German automaker navigates the effects of U.S. tariffs

Europe's biggest carmaker posted a sharp drop in second-quarter profit, primarily due to high costs from increased U.S. import tariffs.

Volkswagen reported a $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.S. President Donald Trump's trade war.