Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
Industrial costs were impacted by higher warranty expense and lower volumes that reduced the spread of our fixed overhead as well as a net EUR 330 million of tariff expense.
Our guidance for Q3 factors in about $0.01 to $0.02 for the impact of currently enacted tariffs.
With the announcement of certain changes to trade policies in the second quarter, we saw that play out.
we saw volumes decelerate following the implementation of tariffs.
Our guidance of $200 million of costs related to the impact of tariffs is unchanged, pending the outcome of additional potential government actions.
This outlook includes a commodity cost headwind of approximately $200 million after tax and a foreign exchange tailwind of approximately $300 million after tax. In addition, our outlook includes $1 billion before tax in higher costs from tariffs in fiscal '26.
Tariffs were net neutral in the quarter.
we proactively mitigated the impact of tariff through strategic sourcing and cost management initiatives.
While raw material inflation and tariffs are driving incremental cost inflation relative to our initial outlook...
At current tariff levels, we now expect free cash flow for the full year to range between EUR 0.2 billion and EUR 0.4 billion, up from slightly positive previously.