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European auto stocks plunge as U.S. tariffs on Mexico, Canada kick in

Stellantis pledges more American cars, thanks Trump for one-month tariff exemption

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Automaker Stellantis said on Thursday it shared U.S. President Donald Trump's goal of building more cars in the United States, as it thanked him for granting a one-month exemption from tariffs on Canada and Mexico.
Stellantis, the parent company of Chrysler, has committed to increasing its production of American-made vehicles following a one-month extension on a tariff exemption granted by former President Donald Trump. This decision was influenced by Trump's 2020 tariff on European car imports, which Stellantis had been lobbying against. The company plans to invest $155 million in its Kokomo, Indiana, plants to produce new electric drive modules, aiming to localize more production in the U.S. This move is part of a broader strategy to adapt to the Inflation Reduction Act, which offers tax incentives for electric vehicles assembled in North America. The tariff exemption, set to expire at the end of March 2025, has provided Stellantis with a temporary reprieve, allowing it to adjust its manufacturing strategy to meet both market demands and regulatory requirements.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/stellantis-pledges-more-american-cars-thanks-trump-one-month-tariff-exemption-2025-03-06/ ]