Stellantis has cautioned its U.S. dealers that newly imposed 25% tariffs on imports from Mexico and Canada could put the automaker at a disadvantage compared to its Asian and European competitors, according to an email sent to retailers on Tuesday.
“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,” the company stated in the email. Stellantis also said it is engaging with the Trump administration in an effort to mitigate the impact of the tariffs.
See also: Stellantis Welcomes EU’s Extended Compliance Period for Emission Targets
Automakers have raised concerns that the tariffs could disrupt the long-established North American supply chain, which has been in place for more than 25 years. The industry has relied on an integrated manufacturing and logistics network across the U.S., Canada, and Mexico, with components and vehicles frequently crossing borders multiple times during production.
The tariffs, announced by U.S. President Donald Trump, took effect on Tuesday, imposing a 25% duty on imports from Mexico and Canada while also doubling tariffs on Chinese goods to 20%.
Trump initially introduced the duties in January with a 10% tariff on Chinese imports and 25% on Canadian and Mexican products, though he granted the two neighboring countries a temporary 30-day reprieve. With that grace period now expired, the higher tariffs have come into force, adding to trade tensions.
Stellantis, the world’s third-largest automaker by sales, has not disclosed specific actions it may take in response to the tariffs. However, the company is expected to continue discussions with U.S. officials to address concerns over potential disruptions to its operations and competitiveness in the American market.
