Stellantis has warned its dealer network in the United States that the imposition of new 25% tariffs on imports from Canada and Mexico could penalize its flagship brands compared to Asian and European competitors. According to an email obtained by Reuters on March 4, 2025, the automotive group is reportedly trying to negotiate with the Trump administration to obtain concessions or alternative solutions to mitigate the negative effects of these measures.
Stellantis warns US dealers of 25% tariff impact on North American imports
The tariffs could put iconic brands like Chrysler, Dodge, Jeep, and Ram in difficulty, making their products less competitive compared to those of Japanese, Korean, and European brands, which are currently not subject to similar tariffs. It is not yet clear whether this situation will lead to price increases or what the direct consequences on sales prices might be.
In recent months, numerous automakers have expressed concern about the potential impact of these measures, but Stellantis risks being hit particularly hard. Already in 2024, the group recorded weakening profits, aggravated by its dependence on North American imports and an intense restructuring phase.
The tension between Stellantis and its US dealers could further worsen. Already in September 2024, dealerships had published an open letter criticizing then-CEO Carlos Tavares’ management, describing it as a failed strategy. The situation was further complicated when, a few months later, Tavares left his position and Stellantis has not yet appointed a replacement.
The uncertainty generated by the tariffs has also had direct consequences on industrial plans. On February 21, Stellantis suspended the restructuring plan for its assembly plant in Brampton, Ontario. A Stellantis spokesperson nonetheless stated that the pause is necessary to reassess the vehicle range for North America, but the chaos and uncertainty gripping the North American automotive sector are having direct impacts on workers.