US tariffs help push Jeep owner Stellantis into big loss - Economy
The 2.3-billion-euro ($2.7-billion) net loss in the first half of the year came as sales in North America continued to slump, down 25 percent by volume in the second quarter year-on-year.
The carmaker, whose stable of brands also includes Peugeot, Citroen and Fiat, said first-half net revenues dropped 12.6 percent to 74.3 billion euros, according to the preliminary and unaudited results.
Sales of vehicles fell by six percent in the second quarter year-on-year, after having dropped nine percent in the first three months of 2025.
Stellantis said "the early effects of US tariffs" had a 300-million-euro negative impact and disrupted its plans to boost its struggling performance in North America.
Automakers have struggled to respond to US President Donald Trump's new US tariff of 25 percent on imported cars that are not largely made within North America.
The company, which also owns the Chrysler, Dodge and Ram Truck brands, paused production at some plants in Canada and Mexico in April as the tariffs went into force.
Stellantis said the sharp drop in North American sales volume was "due to factors including the reduced manufacture and shipments of imported vehicles, most impacted by tariffs," as well as lower sales for corporate fleets.
Restructuring charge
Stellantis also took a 3.3-billion-euro charge, which it said was "primarily related to programme cancellation costs and platform impairments, net impact of the recent legislation eliminating the CAFE penalty rate and restructuring".
Trump's massive tax and spending legislation, approved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can produce and sell more higher polluting cars in the United States.
The company said it was in the early stage of taking action to improve performance and profitability, with new products expected to deliver a larger impact in the second half of 2025.
Stellantis suspended its financial guidance in April due to the heightened uncertainty generated by US tariffs.
Analysts at finance group ODDO BHF said a drop in sales was widely expected and noted that new chief executives often clean house by passing new provisions or restructuring charges.
Company veteran Antonio Filosa took over as chief executive in June and immediately launched a management shake-up.
Filosa headed up the North American region that accounts for most company profits and whose struggles last year precipitated the sacking of Carlos Tavares, and has retained responsibility for the region.
While the overall six-percent drop in sales volumes was in line with analyst expectations, according to ODDO BHF, the 25-percent drop was double the 12 percent foreseen by analysts.
Shares in Stellantis fell 2.1 percent in morning trading on the Paris stock exchange, which was 0.4 percent lower overall.
Stellantis said it would release audited first half results on July 29 as scheduled.
Follow us on:
Short link:
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
10 hours ago
- See - Sada Elbalad
Gold Holds Steady Amid Political Turmoil in Washington as Markets Eye Fed Rate Cut
Waleed Farouk Gold prices remained cautiously stable in both local and global markets during Monday's trading, supported by a steady U.S. dollar following a weaker-than-expected U.S. jobs report for July. The disappointing data revived market expectations for an imminent interest rate cut by the Federal Reserve in its upcoming September meeting. Compared to Saturday's closing, gold prices showed little change. In the local market, 21-karat gold held at EGP 4,600 per gram, while globally, the ounce stood at $3,363. Other gold rates in Egypt were as follows: 24-karat: EGP 5,257 per gram 18-karat: EGP 3,943 per gram 14-karat: EGP 3,067 per gram Gold Pound (8 grams, 21k): EGP 36,800 Weekly Performance: Local Losses vs. Global Gains Domestically, gold lost about 0.6% over the past week, with 21-karat prices falling from EGP 4,630 to EGP 4,600. On the global front, gold gained 0.8%, rising from $3,337 to $3,363 per ounce, supported by weak U.S. labor data and a declining dollar. Disappointing Jobs Report Lends Support to Gold The July U.S. Nonfarm Payrolls (NFP) report showed the economy added only 73,000 jobs, far below expectations of 110,000 — marking the weakest print this year. Moreover, May and June figures were revised downward by a combined 258,000 jobs, while the unemployment rate ticked up to 4.2%. As a result, market expectations for a September rate cut surged. The CME FedWatch Tool now shows a 77% probability of a cut, up from 37% before the report, while Reuters reports that markets are now pricing in a 90% chance of policy easing next month. Political Pressure Boosts Gold, Unsettles Markets Political developments in Washington added a layer of uncertainty. On Friday, President Donald Trump dismissed BLS Commissioner Erika McEntarfer, accusing her of falsifying job data—without providing evidence. The move raised widespread concern among economists about the independence of U.S. institutions and the reliability of official economic data. Additionally, Fed Governor Adriana Kugler announced her early resignation, effective August 8. The vacancy opens the door for President Trump to increase his influence over the Federal Reserve by appointing successors who may shape monetary policy—especially as Jerome Powell's term nears its end. Bond Yields Rebound as Gold Momentum Fades Despite the renewed dovish outlook, rising U.S. Treasury yields capped gold's upside momentum. The 10-year yield climbed to 4.23%, while the 30-year reached 4.83%, rebounding from sharp declines last Friday. Citigroup Revises Forecast: Gold Could Reach $3,600 In a related development, Citigroup revised its gold outlook, now forecasting prices to trade between $3,300 and $3,600 per ounce in Q3 2025. The revision comes amid escalating economic pressures and heightened U.S. tariff policies, enhancing gold's appeal as a safe-haven asset. This marks a significant shift from Citi's June forecast, which projected gold to fall below $3,000. The bank's revised view now aligns with that of Goldman Sachs and Fidelity International, both of which expect current macro conditions to support further gains in gold. Key Data Releases to Watch This Week While the U.S. calendar lacks major economic reports this week, markets will be watching several second-tier indicators and speeches from Fed officials, including: Tuesday: U.S. Services PMI (ISM & S&P Global) Wednesday: 10-year U.S. Treasury auction Thursday: Bank of England monetary policy decision, weekly U.S. jobless claims read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results
Daily News Egypt
11 hours ago
- Daily News Egypt
Modi urges ‘buy local' as India defies US over Russian oil
Indian Prime Minister Narendra Modi has urged his citizens to buy locally-made goods in the face of threats from US President Donald Trump to impose tariffs, as New Delhi affirmed it would continue to purchase Russian oil. 'The global economy is going through many concerns, there is an atmosphere of instability,' Modi said at a rally in the northern state of Uttar Pradesh on Saturday. 'Now, whatever we buy, there should be only one measure: we will buy things that are made with the sweat of an Indian,' he added, stressing the importance of protecting India's economic interests amid unstable global conditions. The remarks came just days after the Trump administration imposed 25% tariffs on some Indian exports to the United States. The White House has also threatened further action if India continues to buy Russian oil. Sources familiar with the matter told Bloomberg that Modi's government has not instructed Indian oil refineries to stop purchasing Russian oil, and no decision has been made to halt the purchases. Both state-run and private refineries are permitted to buy from preferred sources, with the decision to purchase crude oil remaining a commercial one. India a key Trump target India has become one of Trump's main targets in his effort to pressure Russian President Vladimir Putin to end the war in Ukraine. Last week, the US president criticised India for joining the BRICS group of developing nations and maintaining close ties with Russia, saying: 'Together they can bring down their floundering economies.' The rebuke marked a significant shift in the US tone. For years, Washington had largely overlooked India's historically close ties with Russia as it sought to court New Delhi as a counterweight to China in Asia. Trump now appears ready to reverse that strategy to gain leverage against Putin. A senior adviser to Donald Trump, Stephen Miller, accused India of effectively financing the Russian war in Ukraine by purchasing oil from Moscow. Miller, Trump's deputy chief of staff, also accused India of imposing 'huge' tariffs on American goods and 'cheating' the US immigration system, in addition to buying nearly as much Russian oil as China. 'President Trump wants a strong relationship, and he has always had a strong relationship with India and its prime minister. But we need to be realistic about dealing with the financing of this war,' Miller said in press remarks on Sunday. 'So, for President Trump, all options are on the table to deal diplomatically, financially and politically with the ongoing war in Ukraine, so that we can achieve peace,' Miller added. Trump told reporters last week he had 'heard' that India would stop buying oil from Russia, calling it 'a good step'. Bloomberg reported last week that Indian refineries had been asked to devise plans to procure non-Russian crude, thoughone source said the instruction was for 'scenario planning in case the crude is unavailable'. The New York Times also reported on Saturday that India would continue to buy Russian crude despite Trump's threat of sanctions. US and European criticism Indian refineries have faced criticism from the European Union and the United States for supporting Moscow through oil purchases during the Ukraine war. India has become the world's largest buyer of Russia's seaborne crude oil exports, taking advantage of discounted barrels and increasing its purchases from almost zero to about a third of its imports. While China is Russia's main economic and diplomatic backer, Trump's leverage over the world's second-largest economy is limited by Beijing's control over rare earth metals needed by the US for high-tech goods. The US and China have held talks in recent months aimed at stabilising the relationship after both raised tariffs on each other's goods to over 100% earlier this year. India has defended its relationship with Russia, one of its largest arms suppliers since the Cold War. Foreign ministry spokesperson Randhir Jaiswal said on Friday that the two countries have an 'established and stable partnership'. 'Our bilateral relations with various countries are stand-alone and should not be viewed from the perspective of a third country,' Jaiswal said. When asked about relations with the US, he added that he was 'confident that this relationship will continue to evolve'. An official in New Delhi said India expects US trade negotiators to visit the country before the end of this month to continue talks on a bilateral agreement. The official stressed that India would hold its position and not grant the US access to its dairy and agriculture sectors, citing political and religious sensitivities.
Mid East Info
12 hours ago
- Mid East Info
Markets Reverse Course as August Begins - Middle East Business News and Information
By Daniela Sabin Hathorn, senior market analyst at The month of August has opened with a notable reversal in global financial markets. Echoing similar moves seen in 2024, investor sentiment has turned swiftly in response to disappointing U.S. jobs data, rising trade tensions, and renewed expectations of monetary easing. Weak U.S. Jobs Data Shifts Sentiment The latest U.S. labour market data revealed a significant slowdown in job creation, compounded by downward revisions to previous months. This undercut assumptions of resilience in the U.S. economy and ignited fears that growth is losing momentum. In response, markets are now pricing in two Federal Reserve rate cuts before year-end, with an estimated 100 to 140 basis points of easing through 2026. Expectations for a September cut have firmed, despite the Fed's neutral tone at last week's FOMC meeting. Market reaction was swift: equities dropped, gold rallied, Treasury yields declined, and the U.S. dollar weakened. Safe-haven demand has increased, with gold regaining momentum after recent stagnation. Tariff Shock Amplifies Economic Risks The expiration of the August 1 trade deal deadline has added another layer of concern. Average U.S. import tariffs are now expected to rise to nearly 18%, after a series of partial deals failed to sufficiently lower the trade barriers. Notable developments include: 25% tariffs on India, in part as retaliation for Russian oil purchases. 35% tariffs on Canada, though mitigated by USMCA carve-outs. A 15% base tariff on surplus-running countries and 10% on others. These changes, effective from August 7, compound existing price pressures. Last week's PCE inflation data came in hotter than expected, suggesting that the inflationary pass-through from tariffs is beginning to materialize. While the Fed's December projection of 3.1% core PCE inflation leaves some wiggle room, the elevated tariff burden could force a revaluation of both growth and inflation trajectories. Earnings Season Solid, But Not Stellar Although corporate earnings have been broadly robust, especially outside of Big Tech, they haven't been extraordinary. Markets had rallied on strong earnings and economic resilience but were arguably overextended. The sudden influx of negative data has exposed fragile sentiment. Despite the downturn, Monday opened with a rebound attempt in global equities, suggesting ongoing dip-buying interest. European and Japanese indices, as well as U.S. futures, pointed higher, indicating that investors are still willing to take positions on pullbacks. Adding to market nerves, President Trump reportedly dismissed the head of the Bureau of Labor Statistics, accusing her of politically motivated data manipulation. This introduces fresh political risk, particularly as tensions between the Trump administration and the Federal Reserve resurface. Bank of England Preview: A Tough Balancing Act Attention now shifts to the Bank of England (BoE), which meets this Thursday. A 25bps rate cut is widely expected, placing the BoE squarely between the ECB and the Fed in terms of policy stance. The UK economy faces slow growth and sticky services inflation. Labour market weakness is starting to emerge, increasing the risk of stagflation. The vote split will be closely watched, especially for signs that some Monetary Policy Committee (MPC) members are pushing for a 50bps cut. The BoE faces structural economic challenges that rate cuts may not fully address. A Bloomberg report noted that while deposit rates have dropped, the mortgage market structure has delayed relief for households. Savers are feeling the pinch, but borrowers have yet to benefit from lower rates. Looking Ahead: Markets remain fragile and reactive to headline risk. With limited U.S. data this week, focus will stay on: The application of new U.S. tariffs on August 7 Remaining corporate earnings reports BoE policy messaging and vote split Although the fundamental economic outlook remains uncertain, one thing is clear: investor sentiment is no longer unshakable. Traders will need to navigate a complex mix of macro risks, political drama, and central bank recalibrations as the second half of the year unfolds.
