Trump tariffs help push Jeep owner Stellantis into massive $2.7 billion loss

DAMIEN MEYER—AFP via Getty ImagesJeep owner Stellantis said on Monday it suffered a massive loss in the first half of the year, when it felt the first impact of new US tariffs and took a massive charge ing a change in US laws

The carmaker, whose stable of brands also includes Peugeot, Citroen and Fiat, said first-half net revenues dropped 12.6 percent to 74.3 billion euros, according to the preliminary and unaudited results

Stellantis said “the early effects of US tariffs” had a 300-million-euro negative impact and disrupted its plans to boost its struggling performance in North America

Automakers have struggled to respond to US President Donald Trump’s new US tariff of 25 percent on imported cars that are not largely made within North America

The company, which also owns the Chrysler, Dodge and Ram Truck brands, paused duction at some plants in Canada and Mexico in April as the tariffs went into force

Stellantis said the sharp drop in North American sales volume was “due to factors including the reduced manufacture and shipments of imported vehicles, most impacted by tariffs,” as well as lower sales for corporate fleets

Restructuring charge Stellantis also took a 3.3-billion-euro charge, which it said was “primarily related to gramme cancellation costs and platform impairments, net impact of the recent legislation eliminating the CAFE penalty rate and restructuring”

Trump’s massive tax and spending legislation, apved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can duce and sell more higher polluting cars in the United States

The company said it was in the early stage of taking action to imve performance and fitability, with new ducts expected to der a larger impact in the second half of 2025

Stellantis susp its financial guidance in April due to the heightened uncertainty generated by US tariffs

Analysts at finance group ODDO BHF said a drop in sales was widely expected and noted that new chief executives often clean house by passing new visions or restructuring charges

Company veteran Antonio Filosa took over as chief executive in June and immediately launched a management shake-up

Filosa headed up the North American region that accounts for most company fits and whose struggles last year precipitated the sacking of Carlos Tavares, and has retained responsibility for the region

While the overall six-percent drop in sales volumes was in line with analyst expectations, according to ODDO BHF, the 25-percent drop was double the 12 percent foreseen by analysts. s in Stellantis fell 2.1 percent in morning trading on the Paris stock exchange, which was 0.4 percent lower overall

Stellantis said it would release audited first half results on July 29 as scheduled.