Nokia, the Finnish telecom giant, saw its Q1 2025 profits drop sharply due to escalating global trade tensions and new U.S. tariffs. The company reported a net loss of €60 million, a sharp reversal from the €438 million profit it earned in Q1 2024.
Operating profit also fell steeply. Nokia recorded €156 million in Q1, down 74% from €600 million last year. Analysts had expected about €244 million. Margins declined as well, dropping from 49.7% to 41.5%. Rising production costs and global uncertainty contributed to the losses.
CEO Justin Hotard acknowledged the trade-related pressure. He warned that new tariffs could cut Q2 earnings by up to €30 million. That could make it harder for the company to meet its full-year profit forecast of €1.9–2.4 billion.
To ease the impact, Nokia plans to expand its U.S. manufacturing footprint. It already runs five American facilities, including chip and semiconductor plants in California.
Despite recent setbacks, Nokia confirmed its 2025 outlook. It also announced the acquisition of Infinera and extended its partnership with T-Mobile to boost 5G rollout across the U.S.
Still, investors reacted with concern. Nokia’s stock dropped 6% after the earnings report. As trade challenges continue, the company’s ability to adapt will remain under close watch.
