Stellantis faces $1.7 billion loss due to Trump tariffs

In July 2025, Stellantis, the parent company of well-known automobile brands like Chrysler, Fiat, Jeep, and Peugeot, announced significant projected earnings losses attributed to President Donald Trump's tariffs. The company stated that it anticipates a total financial impact of approximately €1.5 billion, equivalent to around $1.7 billion, specifically citing 2025 as the year these losses would materialize. The tariffs, which include a substantial 25% on imports of automobiles and auto parts into the U.S., are particularly detrimental for Stellantis, as a considerable portion of its manufacturing occurs in North America, including plants in Canada and Mexico. As the company reported its financial results for the first half of 2025, it clarified that €0.3 billion of the tariff impact had already been realized in the first half of the year, underscoring the immediate impact these tariffs are having on its profitability. While the EU tariffs on automotive imports will likely raise prices for U.S. consumers looking to purchase vehicles from some competitors like BMW and Mercedes-Benz, Stellantis indicated in its statements that it is not significantly affected by these agreements. Instead, the focus for Stellantis lies on how the existing U.S.-Mexico-Canada Agreement (USMCA) tariffs might be renegotiated in light of evolving trade situations. The automotive industry as a whole has been gearing up for the financial repercussions of these tariffs. General Motors, another major player in the industry, has already reported experiencing a $1.1 billion hit in the second quarter due to similar trade policies. GM has proactively taken steps to mitigate its tariff exposure by investing in assembly plants located in the U.S. to alleviate some of the financial strain caused by tariffs on imports. Analysts, like those from UBS, have pointed out that while Stellantis faces challenges, the company might be more insulated from some tariff-related impacts than its Detroit competitors. In summary, Stellantis's forecasts entail a significant impact from the current U.S. tariff landscape, which stemmed from trade policies enacted by the Trump administration. The automaker is engaged in ongoing discussions with policymakers and is planning various scenarios long-term to address these challenges while remaining vigilant about future developments within trade agreements that could alter its operational landscape.