U.S. Auto Prices Set to Surge by $7,500 as Tariffs Hit Stellantis With $2.7B Loss

"Stellantis is the parent company of major car brands like Dodge, Chrysler, and Jeep. The industry giant is taking a massive hit in earnings, to the tune of $2.7 billion, all in just the first half of 2025. This significant loss comes at the hands of tariffs on EU auto imports. These tariffs could be responsible for raising the cost of imported vehicles by up to a whopping 30%. Stellantis is now forced to cut production and take a hard look at its current strategy.

The American auto industry as a whole is on the verge of significant change. Though Ford and GM continue to have stable domestic sales, they too could be impacted by tariffs on automotive parts. These tariffs, set at 25%, would drastically affect their bottom line and raise new car prices for consumers by an average of $7,500. This could be a major hit for companies who rely almost exclusively on the U.S. market. COVID-era supply issues proved that price surges can quickly kill customer demand.

In this slideshow, you’ll learn how tariffs could affect automakers’ earnings, what happened during past market shocks, and how consumer behavior might change as a result. From rising prices to shifting buying habits, these insights help paint a clear picture of the challenges ahead for the U.S. auto industry."