Stellantis has declared its full support for the vision of United States President Donald Trump aimed at incentivizing vehicle production on American soil. The company has also expressed gratitude for the temporary suspension of tariffs on Canada and Mexico, granted for one month by the U.S. government.
Stellantis promises to produce more cars in the United States following tariffs for Mexico and Canada
“We are grateful to President Trump for this strategic decision,” reads an official statement released by Stellantis, following the White House’s announcement, which confirmed the 25% exemption on tariffs for vehicles imported from the two neighboring countries, provided that automakers comply with current free trade rules. “We share the President’s vision of strengthening American car production and generating stable employment in the United States. We are excited to collaborate with him and his team to achieve these goals,” Stellantis added in the official statement.
This declaration had an immediate impact on the stock market, with the stock rising 3.4% in the early hours of trading on European markets. At the beginning of the week, the company’s shares had hit a historic low of 10.84 euros, the lowest level since Stellantis was formed in 2021.
Since the beginning of Trump’s presidency, Stellantis has reaffirmed its commitment to investing in its operations in the States, supporting the intent to revitalize the American automotive sector. In addition to production plants in the United States, Stellantis owns strategic facilities in Mexico and Canada. According to analysts’ estimates, about 40% of the vehicles sold by the group in the USA come from these two countries.
In the last twelve months, it’s worth noting to understand the complex situation of the giant, Stellantis has had to face declining sales and increased inventory in the U.S. market, traditionally the most profitable for the company. These factors have led to a 64% contraction in operating profit and a loss of liquidity equal to 6 billion euros.