STOCKHOLM, Oct 17, 2025 (BSS/AFP) - Swedish truck-maker Volvo Group reported a sharp drop in third-quarter net profit on Friday, citing weaker demand in the United States amid tariffs and uncertainty over emission rules.

The company said its profit after tax fell 25 percent to 7.6 billion kronor ($804 million).

Sales dropped five percent to 110.7 billion kronor.

"We are in a period with weaker demand in our key regions and with increased uncertainty in North America," chief executive Martin Lundstedt said in an earnings statement.

"The Volvo Group's net sales increased in Europe, while more difficult market conditions in North America and South America impacted sales negatively," he said.

Volvo Group said customers in North America are being "cautious" due to a weak freight market, uncertainty over US emission standards in 2027 and the impact of US tariffs on imports.

The company expects a one-billion-kronor hit from tariffs in the final quarter of the year.