This photograph shows the front logo of a car at the new Citroen C5 Aircross’ production line in the Stellantis car maker plant in Chartres-de-Bretagne, near Rennes, western France, on July 3, 2025.
Damien Meyer | Afp | Getty Images
U.S. President Donald Trump‘s tariffs on European car imports were always expected to hit hard — but a recent flurry of trading updates and corporate earnings from the region’s top automakers can now showcase the impact.
Seeking to protect and strengthen the U.S. automotive sector, Trump imposed 25% tariffs on foreign-made vehicles and car parts in early April.
The automotive sector is widely regarded as acutely vulnerable to levies, particularly given the high globalization of supply chains and the heavy reliance on manufacturing operations across North America.
The U.S. president also raised tariffs on steel and aluminum imports to 50% for most countries. Steel and aluminum are essential materials for durable goods like cars and refrigerators.
U.S. tariffs on EU auto imports, car parts and steel and aluminum.
Trump recently threatened to raise duties on EU auto imports to 30% from Aug. 1, ramping up the pressure on the 27-nation trading bloc. The European Commission, the EU’s executive arm, has since been considering its response.
In a surprise update on Monday, Jeep maker Stellantis said that Trump’s tariffs had cost the company hundreds of millions of dollars.
The multinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, said it expects to have suffered an initial hit of around 300 million euros ($351.1 million) due to net tariffs incurred over the first half of the year.
Auto giant Stellantis expects a net loss of 2.3 billion euros ($2.68 billion) in the first half of the year.
Stellantis Chief Financial Officer Doug Ostermann also said that the full-year impact of U.S. tariffs could climb to 1-1.5 billion euros, according to Reuters. The company’s financial results for the first six months of 2025 will be released on July 29.
Sweden’s Volvo Cars, which is seen as one of the most exposed European carmakers to U.S. tariffs, recently reported a sharp year-on-year decline in second-quarter operating profit.
The company said last week that second-quarter operating profit excluding items affecting comparability fell to 2.9 billion Swedish kronor ($302.3 million), down from 8 billion during the same time last year.
In response to Trump’s tariffs, Volvo Cars CEO Håkan Samuelsson told CNBC’s “Europe Early Edition” on Thursday that the company intends to add its best-selling XC60 sports utility vehicle to the production line of its car plant in South Carolina.
Elsewhere, French carmaker Renault on Wednesday lowered its 2025 guidance and announced the appointment of Duncan Minto as interim chief executive officer.
Shares of Renault year-to-date.
Renault has fared better than many of its European peers in recent months, with a flurry of new launches boosting sales in key markets.
The automaker, which is not directly present in the U.S. market, has previously been singled out as a company that is relatively insulated from the trade disruption caused by Trump’s tariffs.
Even so, Renault has still faced pressure from muted European demand and rising competition from Chinese car manufacturers.
Imports as a share of U.S. car sales for major European companies.
Several European car giants are still to report corporate results. Among them, Germany’s Volkswagen, Europe’s top carmaker, is scheduled to report half-year results on Friday.
— CNBC’s David Martin & Erin Doherty contributed to this report.
