The auto tariffs imposed by the U.S. administrations continue to hurt the automotive industry. Yesterday, it was Stellantis' turn to share its forecasts for the second half of the current year.
Essentially, the manufacturer expects the impact of tariffs to cost it $1.4 billion USD in revenue, this even taking into account the new deal between Washington and the European Union freezing tariffs at 15 percent on vehicles imported into the U.S.
For Stellantis, already struggling with financial issues, the impact is even more severe because it deprives the company of significant and sorely needed revenue. The company recorded a debt of 2.3 billion euros during the first six months of 2025.
In addition to the tariffs it must pay on vehicles produced in Europe, the company also has to pay 25 percent for those it manufactures in Mexico and Canada that are sold in the U.S. Last year, over 40 percent of the 1.2 million vehicles sold by Stellantis in the U.S. were imports, primarily from Mexico and Canada.
The company will of course pass on part of the cost to consumers, but it must calculate carefully, because if its vehicles become too expensive, consumers will no longer be interested, which will worsen its situation.
A difficult situation in North America
In the first half of 2025, Stellantis saw vehicle deliveries in North America drop by 23 percent to 647,000 units. This is partly attributable to a reduction in the production of imported vehicles most affected by tariffs.
The next thing to watch is the situation with Canada and Mexico, specifically what the final tariffs will be once agreements are signed.