US tariffs and EU environmental standards pose risks for the automotive industry – Stellantis

The current US tariff policy and strict EU emission standards pose risks to the US and European automotive industries. This opinion was expressed by John Elkann, Chairman of the Board of Directors of Stellantis, at the group’s annual shareholders meeting. It is reported by Reuters.

In addition, competition from China is increasing. At the same time, automotive production is a source of jobs, innovation, and strong communities, Elkann said.

He called the current conditions for the automotive industry “extreme” and called on the United States and Europe to take urgent action to ensure an “orderly transition.”

In the United States, Mr. Stellantis noted, automakers are facing a layer of additional tariffs, including duties on aluminum, steel, and parts in addition to the 25 percent tariff on auto imports. At the same time, US President Donald Trump’s statement that he is considering some form of tariff deferral on imports of cars and auto parts from Mexico, Canada, and other countries is encouraging.

As for the EU, Elkann said that the bloc’s carbon regulation imposes an “unrealistic path to electrification, detached from market realities.” In his opinion, European governments have, sometimes suddenly, removed incentives for purchases, and charging station infrastructure remains inadequate, slowing the transition to electric vehicles.

In early April, Stellantis NV announced temporary layoffs at its U.S. plants and suspended production at two assembly plants in Mexico and Canada after Donald Trump announced the introduction of large-scale tariffs on imports to the United States.