Nokia reported a €68 million ($72 million) net loss for the first quarter of 2025, as the Finnish telecoms giant blamed mounting global trade tensions and fresh U.S. tariffs for the disappointing results.
In a statement Thursday, the company flagged the “rapidly evolving global trade landscape” as a key challenge, warning that new import duties imposed by the United States could bring “short-term disruption” to its operations.
“We are not immune to the rapidly evolving global trade landscape,” said Nokia President and CEO Justin Hotard. “However, based on early customer feedback, I believe our markets should prove to be relatively resilient.”
Still, Nokia expects the current tariff environment to hit its bottom line in the months ahead. “Based on what we see today, we currently expect a €20 to €30 million impact to our comparable operating profit in the second quarter,” Hotard said.
Earlier this month, President Donald Trump enacted a 10% tariff on a wide range of global imports, though he has temporarily held back on more aggressive measures including a planned 20% duty on goods from the European Union.
For Q1, Nokia reported €4.4 billion ($4.9 billion) in net sales down 1% from the same period last year, when it posted a robust €438 million profit.
Despite the dip, Nokia remains optimistic about its longer-term growth prospects. The company expects its Network Infrastructure, Cloud and Network Services, and Mobile Networks divisions to drive momentum through 2025.
As part of Thursday’s update, Nokia also announced a contract extension with T-Mobile US and noted “positive signs of stabilisation” in its Mobile Networks segment.
