Trump's Tariffs Are Hitting This Massive Car Corporation Hard

Under President Trump, the country is increasingly feeling the economic fallout of new U.S. tariffs — but this experience is not only limited to domestic people and companies. According to Automotive News Europe, automaker Stellantis is reportedly preparing for an estimated $1.4 billion blow to its profits in the second half of 2025, after already reporting a $2.7 billion loss in July 2025 for the first half of the year. This comes despite the fact that the European Union and Trump administration reached an agreement on the tariff rate for some European products — including automobiles — which would now face a 15% tariff.

Stellantis is not the only car company overseas that has felt the burn of increased prices from American tariffs in 2025. In fact, Trump's tariffs have already cost the Volkswagen brand $1.5 billion. Similarly, Mazda, became the first big automaker to halt production in America once tariffs were put in place on "Liberation Day" in April 2025. As President Trump continues to move deadlines for tariffs, and even renegotiates various percentages with different countries, it is clear that car companies are worried about their future — especially if the U.S. keeps high tariffs in place for the foreseeable future.

Forbes noted that, in July 2024, Stellantis recorded a net profit of $6.5 billion while the company's First Half 2025 Results reported, amongst other losses, a $3.8 billion write-down linked to cancelled programs. Stellantis' share price has dipped to $8.75 since the automaker released their first half of 2025 numbers — for January through June — though shares went back up roughly 7%, closing at $9.42 in mid-August 2025. That boost could potentially signal that investors remain confident that the company will find a solution to tariff hikes.

Stellantis also received more good news — in August 2025, Swiss National Bank added 0.8% to its holdings of Stellantis N.V., for a total of 5,817,223 shares. This gives the bank an estimated $64.53 million in the automaker. Marketbeat announced that Swiss National Bank's increased acquisition, along with a mix of other financial institutions and investors recalibrating their numbers of holdings, 59.48% of Stellantis stock in now the control of hedge funds and investment firms. Whether this move bolsters Stellantis' financial footing for the rest of 2025 and beyond remains to be seen, but so far it is giving the company a new lease on life during the chaos caused by tariffs.

Many economic forecasts would say that now is not a good time to buy a car, Stellantis or not, with tariffs only adding to the sticker price of new vehicles in the U.S. On the other hand CNN noted that, between April and June of 2025, car prices did not go up or down, but rather stayed fairly level, despite a 25% tariff on imported cars and auto parts. So far, it seems that car prices are mostly being kept in check.

Stellantis has had a rocky recent history, including the company's CEO stepping down in 2024 and the company's American car brands –- including Jeep, Ram, Dodge and Chrysler -– reportedly having massive 2025 inventories sitting on car dealership lots, not being sold, per Cox Automotive. With that said, if you are in the market for a car, and have your eyes set on a Stellantis brand vehicle, you could probably negotiate a fairly good deal, even with the price hikes caused by Trump's tariffs.