Stellantis: US Tariffs Cost Car Maker $349.2m
After US President Donald Trump announced his tariff shake-up in April, many countries and manufacturers feared the financial impact it would trigger.
Since April, a 25% tariff on US car imports has been in place, which has already created significant disruption and financial loss for businesses.
Dutch car maker company, Stellantis, has been significantly affected by this tariff uncertainty.
Trump’s tariffs
In April, Trump’s tariffs boosted the import price of everything moving into the US, including an import tax of 25% on all cars and car parts.
His major tariff shake-up was announced as an attempt to encourage “tremendous growth” for the US, sparking new jobs and new investment opportunities across the country.
Despite Trump’s optimism, many analysts predicted the change - particularly within car manufacturing - would be more damaging than anything.
In 2024, the US imported approximately eight million cars, equating to US$240bn in trade.
It was predicted that the tariff increase would halt car production in the US, increase prices and cause tensions between allies.
Stellantis, owner of 14 brands including Maserati, Chrysler, Fiat and Citroen, has seen a major loss to sales and finances since the tariff was introduced.
The company has already lost out on €300m (US$349.2m) as a result of the tariffs.
The Dutch company saw a reduction of 25% in shipments to North America in the three months running up to June, as opposed to this period in 2024, pointing towards the high tariffs as a reason.
Moreover, the company says that in the first six months of 2025, total sales have been down 10%.
Further tariff risks
Stellantis has manufacturing plants in the US, but its production is also spread throughout Europe, the UK, Canada, Mexico and South America.
Trump has threatened 30% tariffs on the EU, though the EU remains optimistic that a deal can be reached.
If, however, it remains at 30%, Stellantis will see further losses due to higher shipping costs.
European Commission President Ursula von der Leyen comments: “We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.
“Meanwhile, we continue to deepen our global partnerships, firmly anchored in the principles of rules-based international trade.”
Moreover, Trump has also threatened a 50% tariff on Brazil if the case against former president Jair Bosonaro does not get dropped. The Trump ally is currently facing prosecution over an alleged coup plot.
At present, Stellantis has three facilities in Brazil, which could mean devastation for the manufacturing company.
Widespread losses
With a reduction in shipments, a decrease in sales and an increase in tariff prices, Stellantis is just one of the car manufacturers experiencing a financial loss under these new measures.
In April, British car manufacturer, Jaguar Land Rover (JLR), temporarily halted all exports to the US.
The UK and US came to an arrangement in May, with a tariff of 10% on a maximum of 100,000 UK cars.
Once the UK deal was made, JLR resumed shipments, but it hasn’t been able to recover from the financial blow.
Since then, JLR downgraded its profit predictions, and announced it will be cutting approximately 500 management jobs throughout the UK–1.5% of its British workforce.
This comes after JLR revealed a drop in sales, partially due to the US tariff situation.
Whilst Trump had introduced these measures to strengthen US teams and the US economy, the long-term impact is yet to be known.
We are, however, seeing businesses around the world making changes to their supply chains, looking to move their business away from the US.
