Stellantis' Elkann warns tariffs, emissions policies endanger US, EU auto industries

Stellantis Chairman John Elkann warned that tariffs in the United States and strict emissions regulations in Europe are placing the Western automotive industry under severe strain, just as China outpaces both markets. Elkann criticized the compounded effects of Trump's tariffs on vehicle imports, steel, aluminum, and parts, which have led to production pauses and layoffs for automakers. He also highlighted that the European Union's ambitious CO2 regulations and withdrawal of EV incentives are creating an unrealistic transition toward electrification, further slowing consumer adoption of electric vehicles due to inadequate charging infrastructure. Despite these challenges, Elkann said Stellantis remains committed to renewing its product range and optimizing operations, but acknowledged internal company shortcomings. He expressed cautious optimism following recent statements by Trump suggesting possible tariff relief for the sector. Elkann emphasized the risk to jobs, innovation, and communities if current policy trends continue.