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This photograph shows the beforehand logo of a car astatine the caller Citroen C5 Aircross' accumulation enactment successful the Stellantis car shaper works successful Chartres-de-Bretagne, adjacent Rennes, occidental France, connected July 3, 2025.
Damien Meyer | Afp | Getty Images
U.S. President Donald Trump's tariffs connected European car imports were always expected to deed hard — but a caller flurry of trading updates and firm net from the region's apical automakers tin present showcase the impact.
Seeking to support and fortify the U.S. automotive sector, Trump imposed 25% tariffs connected foreign-made vehicles and car parts successful aboriginal April.
The automotive assemblage is wide regarded arsenic acutely susceptible to levies, peculiarly fixed the precocious globalization of proviso chains and the dense reliance connected manufacturing operations crossed North America.
The U.S. president besides raised tariffs connected alloy and aluminum imports to 50% for astir countries. Steel and aluminum are indispensable materials for durable goods similar cars and refrigerators.
U.S. tariffs connected EU car imports, car parts and alloy and aluminum.
Trump precocious threatened to rise duties connected EU car imports to 30% from Aug. 1, ramping up the pressure connected the 27-nation trading bloc. The European Commission, the EU's enforcement arm, has since been considering its response.
In a astonishment update connected Monday, Jeep shaper Stellantis said that Trump's tariffs had outgo the institution hundreds of millions of dollars.
The multinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, said it expects to person suffered an archetypal deed of astir 300 cardinal euros ($351.1 million) owed to nett tariffs incurred implicit the archetypal fractional of the year.
Auto elephantine Stellantis expects a nett nonaccomplishment of 2.3 cardinal euros ($2.68 billion) successful the archetypal fractional of the year.
Stellantis Chief Financial Officer Doug Ostermann besides said that the full-year interaction of U.S. tariffs could ascent to 1-1.5 cardinal euros, according to Reuters. The company's fiscal results for the archetypal six months of 2025 volition beryllium released connected July 29.
Sweden's Volvo Cars, which is seen arsenic 1 of the astir exposed European carmakers to U.S. tariffs, precocious reported a crisp year-on-year diminution successful second-quarter operating profit.
The institution said past week that second-quarter operating nett excluding items affecting comparability fell to 2.9 cardinal Swedish kronor ($302.3 million), down from 8 cardinal during the aforesaid clip past year.
Shares of Volvo Car year-to-date.
In effect to Trump's tariffs, Volvo Cars CEO Håkan Samuelsson told CNBC's "Europe Early Edition" connected Thursday that the institution intends to adhd its best-selling XC60 sports inferior conveyance to the accumulation enactment of its car works successful South Carolina.
Elsewhere, French carmaker Renault connected Wednesday lowered its 2025 guidance and announced the assignment of Duncan Minto arsenic interim main enforcement officer.
Shares of Renault year-to-date.
Renault has fared amended than galore of its European peers successful caller months, with a flurry of caller launches boosting income successful cardinal markets.
The automaker, which is not straight contiguous successful the U.S. market, has antecedently been singled retired arsenic a institution that is comparatively insulated from the commercialized disruption caused by Trump's tariffs.
Even so, Renault has inactive faced unit from muted European request and rising contention from Chinese car manufacturers.
Imports arsenic a stock of U.S. car income for large European companies.
Several European car giants are inactive to study firm results. Among them, Germany's Volkswagen, Europe's apical carmaker, is scheduled to study half-year results connected Friday.
— CNBC's David Martin & Erin Doherty contributed to this report.
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