Stellantis Faces a Staggering $2.7B Loss Owing to Trump’s Tariffs
Stellantis, the automotive titan, has issued a warning about a startling $2.7 billion loss in the first half of 2025. This loss is primarily attributed to the initial effects of U.S. tariffs and restructuring charges.
The conglomerate, which owns Jeep, Dodge, Chrysler, and Fiat brands, released preliminary estimates on Monday. These estimates show a net loss of €2.3 billion ($2.7 billion) for the first six months of the year. The company stated that it incurred approximately $350 million directly from tariff payments and production disruptions. These disruptions were part of its response to President Trump’s trade policies.
Stellantis reported a decline in vehicle shipments by 6% in the second quarter, amounting to an estimated 1.4 million vehicles. The North American sales saw a drastic drop of 25% year-over-year. In response to the 25% import tariffs on vehicles, the company temporarily halted production at plants in Canada and Mexico. It also laid off 900 workers across facilities in Michigan and Indiana.
According to CFO Doug Ostermann, “the early effects of U.S. tariffs” had a significant impact on the results. He further warned that the full-year tariff impact could reach up to $1.75 billion. The company had suspended its financial guidance in April due to tariff uncertainty. The official first-half earnings will be released on July 29.
Stellantis shares fell by 2.1% in Paris trading, which brings the year-to-date losses to approximately 38%. These preliminary results highlight the broader automotive industry’s struggle with Trump’s trade policies. Similar challenges are being faced by other major automakers operating across international borders.
Source: CNBC