This {photograph} reveals the entrance emblem of a automotive on the new Citroen C5 Aircross’ manufacturing line within the Stellantis automotive maker plant in Chartres-de-Bretagne, close to Rennes, western France, on July 3, 2025.
Damien Meyer | Afp | Getty Photos
U.S. President Donald Trump‘s tariffs on European automotive imports have been all the time anticipated to hit arduous — however a latest flurry of buying and selling updates and company earnings from the area’s high automakers can now showcase the impression.
Searching for to guard and strengthen the U.S. automotive sector, Trump imposed 25% tariffs on foreign-made automobiles and automotive elements in early April.
The automotive sector is extensively thought to be acutely susceptible to levies, significantly given the excessive globalization of provide chains and the heavy reliance on manufacturing operations throughout North America.
The U.S. president additionally raised tariffs on metal and aluminum imports to 50% for many nations. Metal and aluminum are important supplies for sturdy items like vehicles and fridges.
U.S. tariffs on EU auto imports, automotive elements and metal and aluminum.
Trump not too long ago threatened to lift duties on EU auto imports to 30% from Aug. 1, ramping up the strain on the 27-nation buying and selling bloc. The European Fee, the EU’s government arm, has since been contemplating its response.
In a shock replace on Monday, Jeep maker Stellantis mentioned that Trump’s tariffs had price the corporate a whole lot of hundreds of thousands of {dollars}.
The multinational conglomerate, which owns family names together with Jeep, Dodge, Fiat, Chrysler and Peugeot, mentioned it expects to have suffered an preliminary hit of round 300 million euros ($351.1 million) as a result of web tariffs incurred over the primary half of the yr.
Auto big Stellantis expects a web lack of 2.3 billion euros ($2.68 billion) within the first half of the yr.
Stellantis Chief Monetary Officer Doug Ostermann additionally mentioned that the full-year impression of U.S. tariffs might climb to 1-1.5 billion euros, in line with Reuters. The corporate’s monetary outcomes for the primary six months of 2025 can be launched on July 29.
Sweden’s Volvo Automobiles, which is seen as one of the uncovered European carmakers to U.S. tariffs, not too long ago reported a pointy year-on-year decline in second-quarter working revenue.
The corporate mentioned final week that second-quarter working revenue excluding gadgets affecting comparability fell to 2.9 billion Swedish kronor ($302.3 million), down from 8 billion throughout the identical time final yr.
In response to Trump’s tariffs, Volvo Automobiles CEO Håkan Samuelsson instructed CNBC’s “Europe Early Version” on Thursday that the corporate intends so as to add its best-selling XC60 sports activities utility car to the manufacturing line of its automotive plant in South Carolina.
Elsewhere, French carmaker Renault on Wednesday lowered its 2025 steering and introduced the appointment of Duncan Minto as interim chief government officer.
Shares of Renault year-to-date.
Renault has fared higher than lots of its European friends in latest months, with a flurry of recent launches boosting gross sales in key markets.
The automaker, which isn’t instantly current within the U.S. market, has beforehand been singled out as an organization that’s comparatively insulated from the commerce disruption brought on by Trump’s tariffs.
Even so, Renault has nonetheless confronted strain from muted European demand and rising competitors from Chinese language automotive producers.
Imports as a share of U.S. automotive gross sales for main European corporations.
A number of European automotive giants are nonetheless to report company outcomes. Amongst them, Germany’s Volkswagen, Europe’s high carmaker, is scheduled to report half-year outcomes on Friday.
— CNBC’s David Martin & Erin Doherty contributed to this report.
