Luxury carmaker Porsche has sharply revised down its expectations for 2025, blaming a storm of challenges — slumping sales in China, rising supply chain expenses, and disruptive U.S. tariffs — for clouding its financial horizon.

In a statement late Monday, Porsche revealed that 25% U.S. import tariffs, implemented in April, have already dented business through April and May. The company warned that its updated projections still do not fully account for the potential ongoing impact of the tariffs.

“At present, it’s impossible to reliably predict the full financial effects,” Porsche said, underscoring the level of uncertainty facing the company.

The tariffs are expected to jack up car prices by several thousand dollars, which could dampen consumer demand, slow job creation, and deepen the automotive industry’s woes as it already grapples with a sluggish pivot to electric vehicles.

Back in April, Porsche — which lacks U.S. manufacturing operations — had rushed extra inventory to America ahead of the tariff spike, locking in pre-tariff pricing for March orders.

Now, the company forecasts 2025 revenues between 37 billion and 38 billion euros, trimming its earlier estimate of 39 to 40 billion euros. Profit margins are set to tumble as well, with new projections of 6.5-8.5%, compared to the previous 10-12% range.

Analyst consensus from LSEG pegs Porsche’s operating margin at about 9.7% on roughly 38.8 billion euros in revenue.

Porsche, which made a high-profile stock market debut in 2022 with a valuation exceeding parent company Volkswagen AG, has since seen its luster fade — largely due to collapsing demand in China, its largest market. The company reported a 42% plunge in Chinese sales during the first quarter.

Bill Russo, CEO of Shanghai-based Automobility, explained that Chinese consumers have increasingly favored homegrown EV brands, which now often outperform foreign names on technology and innovation.

“Foreign companies never expected Chinese brands could surpass them, especially the Europeans,” Russo noted.

Adding to its challenges, Porsche announced it would scrap plans to expand high-performance battery production at its Cellforce subsidiary, citing dwindling demand for all-electric luxury vehicles in China.