Trying to imagine the future of the automotive industry under a second Trump administration: Stellantis vehicles could face 20% tariffs in the United States. These could rise to 100% if the Group moves production of some models to Mexico. Indeed, Donald Trump aims to introduce 20% tariffs on all goods imported from Europe, including cars. The tycoon is also targeting the company led by Carlos Tavares, which according to some reports is considering moving part of its production from the United States to Mexico. In this case, “we would impose 100% tariffs on every vehicle sold,” said the American magnate.
Stellantis might need to revise its plans following Donald Trump’s election
Back in 2018, during his first term, there was a real possibility that the Trump administration would decide to increase the tariff on European vehicle imports and goods from 2.5% (the rate still applied today) to 25%. At the time, the president was irritated by German brands, accused of taking market share from American manufacturers.
The president-elect has declared himself “in favor of electric vehicles, which however represent only a small part of the market. People want gasoline and hybrid cars.” GlobalData, a consulting firm that provides forecasts for the automotive sector, doesn’t believe that Elon Musk, Trump’s number one supporter, can change the new presidency’s direction: the day after Trump’s victory, they decided to reduce growth estimates for the electric vehicle market in the USA, lowering the market share projection for rechargeable cars in the country for 2030 from 33% to 28%.
“The transition to electric vehicles in the United States will be hindered under the Trump administration,” stated GlobalData’s Vice President Jeff Schuster in a note. According to Schuster, the tycoon’s desire to lower oil prices and relax emission limits could lead to a 15-20% decrease in electric vehicle market share. Is this why Dodge has moved up the debut of the new Charger with a combustion engine?