Trump increases customs duties, Stellantis plunges on the stock market: are French automotive factories threatened?

On Saturday 1ᵉʳ February, the president of the USA Donald Trump set up a 25 % tax on products imported from Mexico and Canada. After this decision, the car giant Stellantis fell heavily on the stock market. With probable future taxes on European products, are the Stellantis factories of Franche-Comté in danger?

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He finally joined acts to speech, and it is the automotive sector that tricks. Saturday, February 1, 2025, the new President of the United States, Donald Trump, made his threats By signing three decrees establishing new customs duties For products from China, Canada, and Mexico.

Donald Trump, at the White House, January 31, 2025. • © Yuri Gripas – Pool via CNP / Consolidated News Photos

A direct consequence of this act, the stock markets have flocked, especially in the automotive sector, directly impacted by these decisions. So, The action of the Stellantis group fell by more than 7 % on the Paris Stock Exchange this Monday, February 3, placing the automaker in place of the Red Lantern of the CAC 40. But why that? And does this risk having consequences on the French factories of Stellantis, including those established in Franche-Comté? We answer you.

Why is Stellantis impacted?

This is the question that we can ask ourselves at first. Why was the Stellantis group so quickly and above all, so strongly touched by these new customs duties? Quite simply, because the company formerly directed by Carlos Tavares, mega global structure composed of 15 automotive brands like Fiat, Chrysler, Citroën, Peugeot, is rooted both in Europe and in the USA.

Stellantis, comes from the merger of PSA (Peugeot SA) and FCA (Fiat Chrysler Automobiles). • © Vincent Isore / Maxppp

Good news, you would tell me, because the old continent is not (yet) subjected to new taxes, and Donald Trump would not risk leading the production of goods produced on his soil. Well, think again.

Indeed, Stellantis will be strongly penalized because a large part of its cars sold in the USA are made on Mexican or Canadian soils, or use parts from these two countries (40 % depending on the Bernstein Alliance asset management company) .

Today, the Stellantis factory in Sochaux has around 6,000 employees, compared to 17,000 in 2002. • © Lionel Vadam / Maxppp

A note from the Royal Bank of Canada produced on February 3 estimates that on the 5.3 million vehicles produced in Mexico and Canada for the year, 70% is intended for the US market.

As you can see, these new customs duties of 25 % would directly impact the production costs of Stellantis, until impacting its profitability and profits. To remedy this situation, the company has already planned changes in its strategy. With a first trend: the increase in its investments and its production units in American territory, so as not to be subject to taxes.

Will this situation have consequences for factories in Franche-Comté for example?

In the coming days, probably not. It is the factories located on the American continent that will be the first impacted, with few consequences on their European twins, such as those vesoul (Haute-Saône) and Sochaux (Doubs) in Franche-Comté.

Despite everything, the “trade war” launched by Donald Trump with great customs duties, could, after Mexico and Canada, go to Europe. This is in any case what the American president had promised, who had assured that the European Union would be “certainly imposed”.

What to make Comtois employees shudder? “Not so much” says Jean-Paul Guy, CFTC union representative in Stellantis Vesoul in Haute-Saône. “Company policy is to sell where you produce.”

What we do in Franche-Comté, we sell it in Europe and not in the USA, so taxes will not put our jobs from dangers directly.

Jean-Paul Guy,

CFTC union representative at the Vesoul Stellantis factory

“On the other hand, taxes on the products exported by the EU could weaken the purchasing power of households, which would not encourage them to buy new cars” concludes the unionist. So, tax against the EU or not? If the alarm does not yet resonate in the Comtois workshops of the Stellantis factories, everyone will still be attentive to the progress of the next few days on the side of the White House.

Note that in the automotive industry, Stellantis was not the only company to suffer from these customs duties. On the Paris Stock Exchange, Renault, which is not on the American market, lost only 0.8% but in Frankfurt, the course of the Action of Volkswagen fell by 6.6%, BMW of 4 , 4% and Mercedes-Benz of 4.8%. In Wall Street, General Motors dropped by 6.2% and Ford lost 4%.

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