Stellantis sees greater tariff impact
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President Donald Trump’s 25% tariffs on imported vehicles and parts have sent shockwaves through the U.S. auto industry.
Shares of Stellantis N.V. (NYSE: STLA) are trading higher Wednesday amid reports that the United States and European Union are nearing an agreement on a new trade deal that could significantly alter tariff rates on automotive imports.
Automakers might increase prices moving forward, according to a report from the intelligence firm AlixPartners.
The car company behind the brands Vauxhall, Jeep and Fiat says US President Donald Trump's tariffs have already cost it €300m (£259.6m, $349.2m). Stellantis said the financial hit was a result of tariffs impacting trade and the company's loss of planned production in its response to the them.
“A world with tariffs is unacceptable for us,” Beato said. “A world with tariffs puts our plant in a vulnerable position, even more so than it is now, and not only for our plant, but all of southern Ontario and the whole auto industry.”
General Motors was the second auto company this week, after Stellantis, to show the toll that President Trump’s trade policies are taking on the industry.