President Donald Trump’s 25% tariffs on imported vehicles and parts have sent shockwaves through the U.S. auto industry.

In all, the company expects to have lost as much as $2.7 billion over the first half of 2025 as a result of costly efforts to improve profitability and tariff-related expenses. The losses also include compliance charges with Trump’s suspension of financial penalties tied to fuel emissions standards.

Shares of Stellantis N.V. (NYSE: STLA) are trading higher Wednesday amid reports that the United States and European Union are nearing an agreement on a new trade deal that could significantly alter tariff rates on automotive imports.

The car company behind the brands Vauxhall, Jeep and Fiat says US President Donald Trump's tariffs have already cost it €300m (£259.6m, $349.2m). Stellantis said the financial hit was a result of tariffs impacting trade and the company's loss of planned production in its response to the them.

Automakers might increase prices moving forward, according to a report from the intelligence firm AlixPartners.

The company reported preliminary losses of $2.7 billion on $83 billion in revenue for the first six months of the year, compared to a profit of $6.5 billion on nearly $100 million in revenue in

Blunt said in an interview the U.S. companies and workers “definitely are at a disadvantage” because they face a 50% tariff on steel and aluminum and a 25% tariff on parts and finished vehicles, with some exceptions for products covered under the United States-Mexico-Canada Agreement that went into effect in 2020.

“A world with tariffs is unacceptable for us,” Beato said. “A world with tariffs puts our plant in a vulnerable position, even more so than it is now, and not only for our plant, but all of southern Ontario and the whole auto industry.”