Stellantis Faces €300m Blow from U.S. Tariffs Amid Global Auto Turmoil
Stellantis, the multinational carmaker behind brands like Jeep, Fiat, Vauxhall, and Citroën, has revealed that U.S. import tariffs have cost it €300 million so far, as new trade barriers shake up global automotive supply chains.
The company, which operates 14 brands across several continents, cited a 25% tariff on cars entering the U.S. – imposed in April under former President Donald Trump’s revived protectionist policies – as a key driver of the financial hit. Stellantis says the levies have not only disrupted its trade flows but also forced it to abandon some planned production, contributing to the mounting losses.
In a preliminary earnings update, Stellantis reported a 25% drop in shipments to North America in the second quarter of 2025 compared to the same period last year. Overall global sales were down 10% during the same period, with the impact of tariffs baked into an expected €2.3 billion net loss for the first half of the year. Revenue is projected to reach €74.3 billion.
While Stellantis operates manufacturing plants in the U.S., it also builds vehicles in the UK, EU, Canada, Mexico, Brazil, and South America – regions now grappling with tariff complications and trade uncertainty.
Trump initially introduced the steep import duties as a way to reinvigorate American car manufacturing. But within weeks, his administration rolled back some of the measures – specifically on foreign auto parts – to ease pressure on domestic production lines.
In May, the UK secured a partial deal with Washington to lower tariffs on up to 100,000 vehicles to 10% – still significantly higher than the previous 2.5% rate. Other nations remain in ongoing negotiations, as Trump threatens further tariff hikes against the EU and Mexico if they respond with retaliatory measures.
Brazil has also come into focus. Trump has warned of a potential 50% tariff on Brazilian exports unless the country drops a legal case against Jair Bolsonaro, his political ally and former president. Stellantis operates three manufacturing plants in Brazil, producing Fiat, Jeep, and Citroën models, potentially putting those operations at risk.
Stellantis isn’t alone in feeling the squeeze. UK-based Jaguar Land Rover temporarily suspended exports to the U.S. in April before resuming shipments the following month under the UK-U.S. deal. The company has since revised its profit forecasts and announced plans to cut up to 500 management roles in Britain, citing continued trade pressures.
As tensions escalate and carmakers adjust to the evolving landscape, the auto industry finds itself in a high-stakes balancing act between navigating tariffs and maintaining global competitiveness.
