(NEW YORK) — President Donald Trump’s tariffs are costing Jeep maker Stellantis hundreds of millions of dollars, the company said Monday.
The giant carmaker expects to have suffered nearly $350 million in losses over the first half of 2025 due to direct tariff payments as well as a loss of planned production on account of the company’s response to the policy, preliminary data showed.
In all, the company expects to have lost as much as $2.7 billion over the first half of 2025 as a result of costly efforts to improve profitability and tariff-related expenses. The losses also include compliance charges with Trump’s suspension of financial penalties tied to fuel emissions standards.
Sales in North America plummeted by one-quarter over a three month period ending in June, when compared to the same period a year earlier. The steep decline owed in part to the “reduced manufacture and shipments of imported vehicles, most impacted by tariffs,” Stellantis said.
Tariffs of 25% on vehicles imported into the United States went into effect on April 2. The auto tariffs, which apply to cars and auto parts, threaten to raise costs for carmakers that often oversee an intricate supply chain snaked between the U.S., Mexico, Canada and beyond.
In a memo in March, the White House touted auto tariffs as a means of bolstering domestic car manufacturers and protecting an industry viewed as important to U.S. national security.
The policy, the White House said, will “protect and strengthen the U.S. automotive sector.”
A day after the tariffs took effect, Stellantis announced it would temporarily pause production at two plants: one in Windsor, Canada, and another in Toluca, Mexico. As a result, the company laid off 900 employees across several U.S. facilities in Michigan and Indiana.
Weeks later, Trump eased the auto tariffs, saying the levies would not stack on top of other sector-specific tariffs, such as those on steel and aluminum.
Still, tariffs appear to have weighed on Stellantis over the first half of this year. A press announcement of preliminary earnings data on Monday mentioned the tariff policy six times.
The preliminary figures arrived without company guidance, which Stellantis paused on April 30. The company released the preliminary data in an effort to address the gap between the consensus forecast among analysts and the company’s performance, Stellantis said.
The company had already anticipated challenges this year as it adjusted offerings, slashed U.S. inventory and sought to mend relationships with car dealers.
CEO Antonio Filosa took the helm of the company last month. In a statement on LinkedIn, he issued a company motto attributed to a previous CEO Sergio Marchionne, saying, “Mediocrity is not worth the trip.”
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