Auto sector limits decline and attempts redemption despite 25% tariffs, Stellantis holds

(Il Sole 24 Ore Radiocor) - The auto sector is trying to limit the damage and indeed raise its head again, despite the fact that from 3 April all cars imported into the United States will be taxed at 25%. US President Donald Trump has in fact confirmed the tariffs on cars not produced in the States. On the other hand, the news had been known for weeks, sothe negative effects had already been anticipated. On the other hand, aspects remain to be clarified, such as possible tariff reductions for products imported from Canada and Mexico that meet certain parameters. Thus, in Milan Stellantis , after a start down just over 1%, turned upwards. After all, in the past month alone, the auto group's shares have dropped more than 16% and since the beginning of the year more than 18%. Of the sector, moreover, Pirelli & C stemming the damage, Brembo defends parity, Sogefi has come in to give up more than a point. In Frankfurt, Volkswagen fell 1 per cent, Daimler edged down 0.15 per cent and Bmw went up 0.87 per cent. In Paris Renault dropped 0.3 per cent.

On 2 April, US President Donald Trump confirmed tariffs on cars imported into the States at 25%, but it should be noted that the tariffs will be applied on the customs value, which is quite different from the selling price. Equita analysts point out that it remains to be clarified how products imported from Mexico and Canada with non-US content will be subjected to the tariffs and how those that comply with the Usmca agreements will be exempted, as the list of these components is unclear at present. "We believe that the consensus estimates for companies in the auto world in most cases do not yet include the effects of the US duties and are therefore subject to downward revision," warned the sim's experts, who nevertheless called for a possible exemption for components and cars produced in Mexico and Canada that comply with the Usmca criteria. In that case, the tariff impact would be less negative for the most exposed companies. In Italy involved are Stellantis, Eurogroup, Sogefi, Pirelli and Brembo.

Pirelli, meanwhile, also remains under special scrutiny for developments on the horizon on the shareholding front, with Chinese partner Sinochem likely to reduce its grip on the company (now 37%), so as to avert a business penalty in the States from 2027, when legislation will come into force that penalises Chinese companies or those counted as such for controlling shareholders. Just yesterday the executive vice president, Marco Tronchetti Provera, revealed that negotiations with Sinochem are ongoing, with the aim of preserving the growth of the tyre group. The entrepreneur expressed optimism, describing himself as 'confident' that an agreement will be reached. He also explained: 'We distribute our products in 160 countries and we are always aligned to local regulations. So what we are saying is that in America there are regulations, some of which are already enforceable and some that are coming, so we have to have governance that is appropriate to what the world market is'. Tronchetti then concluded: 'we will come to an agreement. Obviously negotiations are made of steps, but we will certainly arrive at an agreement that will guarantee Pirelli's future'.