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Stellantis slips as Trump threatens 50% Canada auto and steel tariffs
The company expects a 2026 tariff headwind of about €1.0 billion to €1.2 billion, larger than its latest quarterly adjusted operating income.
Stellantis shares fell after President Donald Trump threatened to raise tariffs on Canadian cars, trucks, auto parts and steel to 50% from January 1, 2027, following the collapse of US-Canada trade talks, Yahoo Finance reports. Investors also repriced North American supply chain costs as Ford and General Motors dropped, while US steelmakers rallied on expectations that higher tariffs on Canadian steel could support domestic pricing.
The tariff risk appears especially acute for Stellantis due to its Canadian manufacturing footprint, which includes the Windsor plant that produces the Chrysler Pacifica and Dodge Charger. According to Yahoo Finance, the Windsor site added a third shift, lifting employment to nearly 6,000 workers, while the Brampton facility remains idle after the future Jeep Compass program moved to Belvidere, Illinois.
Yahoo Finance adds that Unifor says Stellantis has considered closing or selling Brampton, though no final decision has been announced, and hopes that the plant could assemble Leapmotor electric vehicles have not yet materialized into a confirmed program. Stellantis is also trying to rebuild investor confidence after a difficult period, with its latest quarter showing net revenue of €43.5 billion, up 13%, North American revenue up 32%, net profit returning to €0.3 billion, and industrial free cash flow improving to €1.0 billion.
Still, the outlet notes that the tariff impact would be large, with Stellantis expecting a 2026 tariff headwind of €1.0 billion to €1.2 billion, which it says exceeds its latest quarterly adjusted operating income. The US and Canada also failed to agree on rules for how regional content qualifies for any potential reduction in Canadian-built vehicle duties, after Washington sought more weight on US-made parts and Ottawa pushed back.