U.S. Customs Duties Have Resulted in a $350 Million Loss for Stellantis
In the automotive industry, the implementation of U.S. tariffs on imported automobiles has had a profound impact on Stellantis, a multinational automaker with operations on both the American and European continents.
The financial deterioration of Stellantis, which produces 14 brands including Fiat, Jeep, and Citroën, can be traced back to the tariffs imposed by the Trump administration in 2021. These tariffs, set at 25%, have disrupted Stellantis' supply and sales chains, contributing to a significant decline in the company's profitability.
In the first half of 2025 alone, Stellantis reported a net loss of $2.7 billion, a sharp decline from a $5.6 billion profit in the same period the previous year. The company has warned that results in the second half of the year may worsen due to continued tariff pressures. Specifically, tariffs cost Stellantis approximately €300 million in the first half of 2025.
Experts predict that Stellantis may lose up to $1.7 billion by the end of 2025. The company's losses are expected to exceed €300 million by the end of the year, and its preliminary first-half financial assessment suggests potential significant financial losses in the second quarter of 2025.
Stellantis' financial assessment also indicates that the potential tariffs on imports from Brazil could increase its losses. The company has three plants producing Fiat, Jeep, and Citroën vehicles in Brazil, and any additional tariffs could exacerbate the financial strain.
The company's losses are not only due to planned production cuts in response to lower vehicle sales but are directly related to the U.S. tariffs on imported automobiles. The tariffs threaten to impact Stellantis' revenues and profits further, as the company anticipates essential production cuts and continues to grapple with the financial consequences of the trade measures.
In summary, the U.S. automobile import tariffs have materially hurt Stellantis' profitability, as seen by a significant swing from multi-billion-dollar profits to losses by 2025. The company's financial assessment suggests potential significant financial losses in the coming months, underscoring the need for a re-evaluation of U.S. tariff policies on imported automobiles.
The tariffs on imported automobiles have caused a financial deterioration for Stellantis, a multinational business producing various brands like Fiat, Jeep, and Citroën, which has resulted in a projected loss of up to $1.7 billion by the end of 2025, and potential additional financial losses due to planned production cuts and potential tariffs on imports from Brazil.
