Trump to Hike EU Car Tariffs to 25%, Pressuring Stellantis’ European Exports
President Trump will raise US tariffs on EU cars and trucks to 25% next week, increasing costs for Stellantis’ European exports while exempting US-made models. He highlighted a record $100 billion investment in American auto and truck plants, boosting the competitive position of domestic production.
1. Tariff Increase Announcement
President Trump announced that starting next week, all cars and trucks imported from the European Union will face a 25% tariff. Vehicles assembled at US plants will remain exempt, marking a significant shift from the prior 15% rate under the August 2025 trade framework.
2. Impact on Stellantis
Stellantis relies on European manufacturing hubs for key passenger and commercial vehicle exports to North America, and the higher duty will raise landed costs and compress margins. The company must evaluate pricing strategies, potential production reallocations, or absorption of tariffs to maintain US market share.
3. US Manufacturing Investments
The administration pointed to over $100 billion in recent investments across American auto and truck plants as evidence of domestic industry growth. These projects enhance capacity for US-made models, giving them a cost advantage over imported rivals under the new tariff regime.