Stellantis Faces $1.7B Earnings Blow from Tariffs

On Tuesday, Stellantis stated that President Trump's tariffs could result in a financial loss of 1.5 billion euros, approximately $1.7 billion, for the automotive company in 2025.

The holding company behind brands such as Chrysler, Fiat, Jeep, and Peugeot reported anticipated financial losses amid Mr. Trump's remarks. clinches deals With U.S. trading partners who impose high taxes on American imports, Stellantis anticipates the majority of the profit drop will occur during the latter part of 2025.

Stellantis has revised its projection for the 2025 net tariff effect to around €1.5 billion, with €0.3 billion already experienced during the first half of 2025. The firm continues to be actively involved with appropriate government officials, along with maintaining ongoing strategic forecasting, according to the company’s announcement on Tuesday when it released its mid-2025 financial performance details.

The car manufacturer admitted that Mr. Trump's 25% taxes on imported vehicles and automotive components into the U.S. are hurting its business especially in North America. Stellantis produces its Chrysler, Dodge, and Jeep branded vehicles in manufacturing plants located in Canada and Mexico, making them vulnerable to the updated tariffs.

According to experts, Mr. Trump's arrangement with the European Union, which includes a 15% uniform tariff rate, could lead to higher prices for BMW and Mercedes-Benz cars in the United States. However, Stellantis is not significantly impacted by this EU pact.

"Stellantis hasn't been significantly impacted by the recent EU/U.S. tariff developments—what matters for STLA is whether the Detroit-3 will seek to revise the [United States-Mexico-Canada Agreement (USMCA)] tariffs now that the EU and Japan have secured more favorable terms," stated UBS analysts in a report.

Other automobile manufacturers, including General Motors have been preparing for the effects of tariffs. GM Chief Executive Mary Barra mentioned that the company suffered a loss of $1.1 billion due to tariffs during the second quarter, and that the firm is implementing measures to minimize its tariff risk by increasing investments in American manufacturing facilities.

European automaker Volkswagen also mentioned last week that taxes increased the company's expenses $1.5 billion during the first part of 2025