Stellantis has warned its US dealers that the now-in-effect 25% tariffs on imports from Canada and Mexico will put their products at a disadvantage against competitors from Asia and Europe, according to an email seen by Reuters on 4 March 2025. The automaker is currently in discussions with the Trump administration for possible relief or workarounds against the tariffs’ worst affects, the email said.
“These tariffs will put Stellantis’ flagship Chrysler, Dodge, Jeep and Ram brands at a competitive disadvantage versus Korean, Japanese and European importers, which are not facing similar tariffs at this time,” Reuters quoted the email as saying. Whether there will be increases to sticker prices, or by how much, is not currently known.
Virtually all automakers operating in North America have sounded the alarm over the harmful effects of the tariffs in recent months. However, Stellantis may be acutely affected due to its already-weakened profits in 2024, heavy reliance on imports from neighbouring countries, and ongoing restructuring efforts. The news will also likely do little to improve already-fraught relations with Stellantis’ dealership networks, which sent an open letter criticising the “disastrous” strategy of then-Chief Executive Carlos Tavares back in September 2024. Several months later, Tavares was gone, and a replacement has yet to be named.
Notably, Stellantis hit pause on plans to retool its Brampton, Ontario assembly plant on 21 February. While a spokesperson for Stellantis told Automotive World at the time that the pause was necessary as it reassesses its North American product lineup, Unifor National President Lana Payne has speculated that the ongoing trade dispute with the US is likely playing a role too: “The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the US, are having real-time impacts on workers and corporate decisions.” Unifor is Canada’s largest private sector union and struck the bargaining agreement with Stellantis that paved the way for the retool.
