Stellantis is facing a crushing financial blow this year as U.S. import tariffs under President Donald Trump are expected to cost the automaker €1.5 billion ($1.7 billion)—five times what it lost in the first half of 2025 due to those levies.

The maker of Jeep, Chrysler, Fiat, and Peugeot said Tuesday that it suffered a net loss of €2.3 billion ($2.65 billion) in the first six months of the year, a staggering reversal from the €5.6 billion ($6.5 billion) profit recorded in the same period last year.

Revenue also dropped sharply, plunging 13% to €74.3 billion ($85.7 billion), as U.S. vehicle shipments fell by nearly a quarter. That decline followed the company’s decision to drastically reduce imports into the U.S. in a bid to shield itself from Trump’s revived 25% auto tariffs, which now target a wide array of foreign-manufactured vehicles.

The tariff-related losses alone amounted to €300 million ($346 million) in just the first six months of 2025, and Stellantis now projects the full-year damage will reach €1.5 billion. The company made clear that this level of financial exposure is unsustainable, even as it scrambles to adapt.

The blow comes as Stellantis contends with a slew of internal setbacks. It burned through €3.3 billion ($3.8 billion) in cash, driven by the abrupt cancellation of a hydrogen fuel cell project, compliance costs stemming from a revised U.S. carbon emissions penalty system, and significant write-downs on past platform investments, many of which are now being abandoned as part of the company’s restructuring.

The firm’s new CEO, Antonio Filosa, who took over in June, is leading the turnaround. In a statement on Tuesday, he acknowledged the depth of the crisis but insisted the company still has the strength and discipline to correct course.

“My first weeks as CEO have reconfirmed my strong conviction that we will fix what’s wrong with Stellantis,” Filosa said. “The new executive team will continue to make the tough decisions needed to re-establish profitable growth and significantly improve results.”

Filosa inherits a company that, even before the tariffs, was under pressure to simplify its global operations and reduce reliance on low-margin models. However, the new tariff burden—coming amid Trump’s broader protectionist push—has raised the stakes dramatically. Stellantis’s traditional strength in North America has now been severely undermined, with revenue in the region down by over 25%. For the first time in years, its European operations generated more income than its U.S. business.

Despite the turmoil, Stellantis has reissued a full-year forecast, saying it expects revenue and cash flow to improve in the second half of the year. Management is now targeting a return to positive cash generation and operating profit margins in the low single digits by year-end.

Still, the road ahead is far from smooth. Trump’s tariff escalation has forced automakers across the globe to rethink their U.S. strategies, but Stellantis appears to be among the hardest hit. Its global footprint, once an advantage, now exposes it to the highest costs in a market increasingly tilted toward domestic production.

This means 2025 is proving to be a year of reckoning—not just financially, but structurally for Stellantis. The company is being forced to dismantle parts of its long-held strategy while absorbing a multi-billion-euro blow in the process. And unless the trade environment changes, even the toughest internal decisions may not be enough to shield it from further losses.

The ripple effects of President Donald Trump’s sweeping tariff strategy are beginning to show, with new data and expert analyses suggesting that U.S. consumers could soon face significantly higher prices for everyday food products — and worse still, the most severe economic consequences may still lie ahead.

Trump’s latest wave of tariffs, scheduled to take full effect on August 1, aims to force a reorientation toward American-made goods. But economists warn that this strategy is creating distortions in supply chains, especially for food items the U.S. cannot produce at scale, such as Brazilian coffee or bananas.

According to a new analysis from the Tax Foundation, the U.S. imported $221 billion worth of food products in 2024, many of which already face tariffs ranging from 10% to 30%. The August levies, if implemented fully, could push rates beyond 30% for some imports.

The top five imported food categories by volume—liqueurs and spirits, baked goods, coffee, fish, and beer—make up about 21% of total U.S. food imports. Consumers are already seeing a shift: grocery prices are up 2.4% from a year ago, but economists say the worst is yet to come. A report from The Budget Lab at Yale forecasts that the new tariffs will push food prices 3.4% higher in the short term, with a sustained 2.9% increase in the long run. Fresh produce could initially spike by nearly 7%, before leveling off at a 3.6% increase.

Alex Durante, senior economist at the Tax Foundation, explained that some items have no real domestic alternatives, forcing Americans to pay higher prices or go without.

“In some cases, U.S. consumers may decide to pay more for these imported food products rather than choosing a substitute,” he said.

The White House insists that the pain is being felt primarily by foreign exporters. “The Administration has consistently maintained that the cost of tariffs will be borne by foreign exporters who rely on access to the American economy, the world’s biggest and best consumer market,” said spokesperson Kush Desai.

He pointed to a recent White House Council of Economic Advisers report showing that the price of imported goods, measured via the personal consumption expenditure index, actually declined between December and May.

But market analysts and independent economists see a more troubling picture forming—one that suggests U.S. households will carry a greater share of the burden, and that this policy path may be steering the country into a stagflation scenario.

Torsten Sløk, chief economist at Apollo Global Management, warned earlier this month that the most damaging effects of Trump’s tariffs are not immediate, but lagging.

“They need to wait to see the peak,” Sløk said, referring to the Federal Reserve’s cautious stance on interest rate adjustments. “We have really only had the take-off stage,” he added, cautioning that inflationary pressures are still working their way through the system.

Sløk projects that toward the end of the year, the full brunt of the tariffs could manifest in a dangerous economic blend of high inflation and sluggish growth—conditions ripe for stagflation, which the U.S. hasn’t faced on this scale since the 1970s. The concern is that as prices rise, consumer spending could slow, especially among lower- and middle-income households, creating a drag on economic momentum that may extend well into 2025.

What makes this situation particularly volatile is the timing. The Federal Reserve has been holding off on rate cuts, banking on the idea that inflation is cooling. But as tariff-driven price increases begin to surface in essential goods like food, the Fed may find itself stuck between the need to tame inflation and the risk of stifling growth.

“We could see some large movements in prices over the next few months if the administration holds firm to that Aug. 1 deadline,” Durante told CNBC.

If the analysis holds true, American households will not only feel the squeeze at grocery stores but may also see broader price increases across other sectors, including consumer goods and transportation. The outlook paints a precarious economic trajectory in which political strategy and economic stability are now on a collision course, with ordinary Americans caught in the crossfire.