- Nokia's CEO blamed dollar weakness and tariffs for a lowered Q2 profit
- The vendor reported a profit down at $267 million
- This is even before the Trump tariffs on the EU are expected to come in on August 1
Woof, that's not the news you want to hear. A weaker U.S. dollar and the effects of the Trump administration’s trade tariffs caused Nokia to lower its profit prediction for 2025 by some $300 million.
The company announced the change as part of its Q2 2025 earnings report, predicting an operating profit for the year in the range of $1.9 billion to $2.5 billion (1.6 billion to 2.1 billion Euros) rather than the previously forecast $.2.2 billion to $2.8 billion (1.9 billion to 2.4 billion Euros).
“Our profitability was impacted by currency fluctuations, particularly the weaker U.S. dollar, which was both an operational headwind and a headwind in our venture fund,” Nokia’s new CEO Justin Hotard noted on the call.
The Trump administration’s tariffs plans have also started to impact the vendor, well before the August 1 date when European tariffs are expected to kick in. “For the full year 2025, we now expect to see an impact of between [$59 million] 50 million and [$94.17 million] 80 million Euros tied to fulfillment of preexisting customer orders,” Hotard said.
As Fierce has already noted, Trump has so far chickened out in implementing many of his planned tariffs. Despite that, even the tariffs in place and the threat of new ones have negatively affected Nokia.
Financials
Nokia reported weaker-than-expected Q2 numbers, with net income from continuing operations of $94.12 million (83 million Euros), compared to $435 million (370 million Euros) in the quarter a year ago. Profit was down at $267 million (236 million Euros).
Nokia’s shares were down 3.98% at $4.34 on the earnings report.