Stellantis Experiences $350 Million Loss Due to American Tariff Fees
Stellantis, the multinational automobile manufacturing company, has announced that it is expecting a net financial impact of approximately €1.5 billion ($1.7 billion) by the end of 2025 due to U.S. tariffs on automobiles and auto parts. This prediction comes after the company has already incurred €0.3 billion ($0.349 billion) in the first half of 2025, with the majority of the impact expected in the second half of the year.
The tariff-related costs include direct tariff payments and operational losses stemming from reduced production and shipments of imported vehicles. Brands like Chrysler, Dodge, and Jeep, which have manufacturing in Canada and Mexico, are particularly affected by the 25% tariffs on imports into the U.S. These tariffs have contributed to significant declines in North American sales, with one-quarter lower sales reported over a recent three-month period ending June 2025 compared to the previous year.
Stellantis, which controls 14 brands, reported a net loss of €2.3 billion ($2.66 billion) in the first half of 2025. The company is actively engaging with policymakers and is undertaking long-term planning to address these headwinds while expecting gradual improvement in the latter half of 2025.
The tariffs imposed by the U.S. President Donald Trump's administration are a significant factor in Stellantis' expected losses. The company has already lost €300 million ($349.2 million) from its revenues this year due to U.S. tariffs. Stellantis forecasts revenues for the first half of 2025 to be €74.3 billion ($86.1 billion).
In response to lower vehicle sales, Stellantis is planning production cuts, which are contributing to its expected losses. The company published a preliminary first-half financial assessment ahead of its full second quarter 2025 earnings, scheduled for release on July 24.
It's important to note that Stellantis has manufacturing plants on both the American and European continents. The company also has three plants producing Fiat, Jeep, and Citroën vehicles in Brazil, which are exposed to potential steeper tariffs on imports to the U.S.
In summary, the tariffs are expected to cost Stellantis about $1.7 billion by the end of 2025, heavily weighing on earnings and operational performance primarily due to tariffs on imports from Canada and Mexico into the U.S. and related business disruptions. The company is actively working to mitigate these losses and is hopeful for gradual improvement in the latter half of 2025.
The tariffs on imports from Canada and Mexico have caused significant financial issues for Stellantis, leading to a projected net financial impact of approximately $1.7 billion by the end of 2025. This projection is due in part to the reduced production and shipments of vehicles, resulting from these tariffs, which have also impacted business operations within the industry and finance sectors.
Stellantis' reported net loss of $2.66 billion in the first half of 2025 is attributed, in part, to the tariffs imposed by the U.S. President Donald Trump's administration, with the company already losing $349.2 million from its revenues this year due to these tariffs.
