Car exports take a major blow as global supply chains feel the strain
Stellantis, the automotive giant behind brands like Fiat, Jeep, and Vauxhall, has revealed a staggering €300 million financial blow due to US car tariffs. The new import levies, introduced under former President Donald Trump, have disrupted global car exports and shaken up the company’s production and trade strategies.
Tariffs Trigger Trade Trouble
Since April, the US has imposed a 25% tariff on imported vehicles, shaking the international automotive landscape. Stellantis reports that these tariffs not only hampered its North American exports but also forced a shift in planned production. Shipments to the region fell by 25% in the second quarter of 2025 compared to the same period last year.
This disruption, the company says, directly resulted in lower vehicle availability, decreased sales, and additional costs across its network. Overall sales dropped 10% in that period, adding to the strain.
Stellantis Struggles Despite Global Footprint
Despite owning 14 prominent car brands—including Alfa Romeo, Dodge, Citroen, and Maserati—Stellantis couldn’t escape the widespread impact. While the company operates manufacturing plants in the US, a significant portion of its vehicles still comes from the UK, Europe, Canada, Mexico, and South America.
These global ties, once a strength, have become liabilities in the face of rising protectionism and uncertain trade conditions. Stellantis is now forecasting €74.3 billion in revenue for the first half of the year, alongside a projected net loss of €2.3 billion—a hit that includes the direct impact of tariffs.
Tariff Tensions Rise Across Continents
When Trump introduced these car tariffs, the stated goal was to protect and strengthen the American auto industry. However, the plan backfired quickly. Within weeks, the administration relaxed duties on foreign car parts, highlighting the complexities of global auto manufacturing.
Meanwhile, the UK struck a partial deal with the US in May, securing a reduced 10% tariff for up to 100,000 vehicles—a significant jump from the previous 2.5% but still more favorable than full tariff rates. Other nations remain in prolonged negotiations as the US threatens further hikes on countries like the EU, Mexico, and Brazil.
JLR Also Feels the Heat
Stellantis isn’t the only automaker dealing with consequences. Jaguar Land Rover (JLR) halted US-bound shipments in April, only resuming in May after the UK deal. In June, the company revised its profit expectations downward and last week, announced plans to cut up to 500 managerial positions in the UK due to ongoing tariff-related pressure.
Brazil Facilities in the Crosshairs
Stellantis also has manufacturing hubs in Brazil, a country now facing separate trade tensions with the US. Trump recently warned of 50% tariffs on Brazilian exports if it doesn’t abandon a legal case against his ally, former president Jair Bolsonaro. Any such move would directly impact Stellantis’ three Brazilian plants, which produce Fiat, Jeep, and Citroen models.
As the global car industry grapples with unpredictable trade policies, manufacturers like Stellantis must continuously adapt. The intersection of politics, production, and international trade is shaping the future of mobility—one tariff at a time.
Stay tuned to Maple Wire for more global business insights.
