Stellantis and other European automakers fall on yet another US tariff threat

President Trump’s latest tariff target has European auto stocks, including Jeep maker Stellantis, Volkswagen, and Mercedes-Benz, hitting the breaks. In a Friday morning Truth Social post, Trump threatened to slap the EU with a fresh 50% tariff as early as June 1.

“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States,” the President wrote.

Trump’s potential EU tariffs would be yet another headache for these automakers, which have adjusted their US strategies multiple times through April’s 25% auto tariff, May’s 25% auto parts tariff, and various other targeted levies, delays, and adjustments. Shares of nearly all major EU car manufacturers were down 3% or more on Friday.