Stellantis Stock: Trump Tariffs Trigger Sharp Decline

Stellantis shares plummeted 4.81% to €7.85 on Wednesday, representing a substantial €0.40 loss per share. This sharp decline comes as the automaker grapples with the impact of President Trump's newly imposed 25% tariffs on vehicles imported from Mexico and Canada. The situation has forced Stellantis to temporarily halt production at facilities in both countries, with ripple effects extending to five U.S. plants and resulting in approximately 900 American workers being temporarily laid off. While manufacturers meeting specific U.S.-Mexico-Canada Agreement conditions can deduct the value of U.S. components, the financial burden remains significant. Adding to investor concerns is the looming threat of additional 25% tariffs on auto parts by May 3, which could further disrupt supply chains.

Industry Calls for Relief Amid Innovation Efforts

Despite Trump announcing a 90-day pause for many tariffs, the 25% import duties on vehicles and existing tariffs on aluminum and steel remain in place, continuing to pressure automakers. Industry voices including the Detroit Chamber of Commerce and Michigan Governor Gretchen Whitmer have advocated for automotive sector exemptions, highlighting the complex international supply chains at risk. Meanwhile, Stellantis is advancing technical improvements to its electric vehicles, with models like Peugeot e-208 and Lancia Ypsilon Electric receiving enhanced battery chemistry that extends range by up to 23 kilometers. However, these innovations may prove insufficient to offset the market challenges facing the conglomerate.

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Source StockWorld