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Nokia Faces Tariff Challenges, Explores U.S. Manufacturing Expansion

The company forecasts a €20–30 million Q2 profit hit from tariffs and considers domestic production to mitigate trade pressures.

A view shows Nokia headquarters in Espoo, Finland, October 19, 2023. JUSSI NUKARI/Lehtikuva/via REUTERS/File photo
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Overview

  • Nokia projects a €20–30 million impact on its Q2 operating profit due to existing U.S. tariffs, straining its financial performance.
  • New CEO Justin Hotard has expressed openness to expanding U.S. manufacturing to bolster resilience against tariff risks.
  • The company reported a steep decline in Q1 operating profit to €156 million, down from €600 million a year earlier, with a $68.2 million net loss.
  • Despite recent challenges, Nokia maintains its 2025 profit outlook of $2.2–2.7 billion, though reaching the higher end may prove difficult.
  • Nokia’s UK division demonstrated stability, with 2023 revenues of £448.9 million and £18.5 million in pre-tax profits, contrasting global headwinds.