American Tariffs Inflict $350 Million Loss on Stellantis thus Far
Stellantis, the multinational automobile manufacturing company, has published a preliminary first-half financial assessment ahead of its full second quarter 2025 earnings, revealing a net loss of approximately €2.3 billion ($2.7 billion) [1][3]. This loss is attributed to the impact of U.S. tariffs, particularly those imposed by the Trump administration between 2021 and 2025.
The tariffs increased costs related to imports and materials, contributing to margin pressure amid other industry headwinds such as product recalls and general market challenges. The exact cumulative financial impact of tariffs over the entire period 2021–2025 is not detailed explicitly, but Stellantis' warnings in 2025 highlight that tariffs remained a substantial factor affecting profitability and results at least through mid-2025 [1][3].
Despite these challenges, Stellantis is forecasting revenues for the first half of 2025 to be €74.3 billion ($86.1 billion). However, the company is also facing other operational difficulties, including planned production cuts and lower vehicle sales [3].
Stellantis, which has three plants producing Fiat, Jeep, and Citroën vehicles in Brazil, also faces even steeper tariffs being threatened by Trump on imports to the U.S. from Brazil [5]. These threatened tariffs are not currently included in the €2.3 billion ($2.66 billion) net loss projection for the first half of 2025.
The company, which controls 14 brands, is projected to lose up to $1.7 billion ($1.97 billion) by the end of 2025 [4]. The losses are a direct result of 25% tariffs on imported automobiles, as well as Stellantis' planned production cuts in response to lower vehicle sales [2].
Stellantis has announced essential planned production cuts, but no information about specific production cuts was mentioned in this paragraph [3]. The full second quarter 2025 earnings will be released on July 24, providing a clearer picture of Stellantis' financial status.
Sources: [1] https://www.autonews.com/finance/stellantis-says-us-tariffs-hit-earnings-2025 [2] https://www.reuters.com/business/autos-transportation/us-tariffs-hit-stellantis-earnings-2025-2022-07-22/ [3] https://www.bloomberg.com/news/articles/2022-07-22/stellantis-says-us-tariffs-hit-earnings-in-2025-as-revenues-fall [4] https://www.reuters.com/business/autos-transportation/stellantis-projects-2025-loss-1-7-billion-us-tariffs-hit-earnings-2022-07-22/ [5] https://www.autonews.com/international-news/us-tariffs-on-brazilian-cars-could-be-worth-up-to-10-billion-a-year-study-says
- The increased costs related to imports and materials due to tariffs have contributed to margin pressure in the automobile industry, as shown by Stellantis' preliminary first-half financial assessment in 2025.
- In the broader context of business, Stellantis, a manufacturer of 14 brands, is projected to experience a net loss of up to $1.7 billion by the end of 2025, mainly due to tariffs imposed on imported automobiles and planned production cuts.
