Trump Tariffs Cause Hundreds-Million-Euro Losses for European Automakers

President Donald Trump's tariffs on European car imports, including a 25% levy on foreign vehicles and parts and a 50% tariff on steel and aluminum, are significantly impacting the automotive sector. Major automakers like Stellantis reported substantial financial losses, with the company estimating a $2.68 billion net loss in the first half of 2025 due to these tariffs, and projecting full-year costs between 1 and 1.5 billion euros. European automakers such as Volvo have also seen sharp declines in operating profits, highlighting the sector's vulnerability to these trade measures. Economic experts warn that tariffs on imported vehicle parts are driving up production costs and vehicle prices for consumers, with the cost often passed on in full or greater measure, potentially affecting sales and jobs. Consumers are advised to shop wisely and consider refurbished parts to mitigate rising maintenance and repair expenses. Meanwhile, the uncertainty surrounding tariffs is causing broader economic impacts, including dampening confidence in manufacturing-reliant regions and contributing to downturns in related markets such as housing in Southern Ontario.