Stellantis shines on the stock market as the sector awaits the US-Canada trade deal
The entry into force of the 50 per cent tariffs has been suspended. Trump announces the agreement; Carney speaks of ‘substantial progress’ in the negotiations
Martina Soligo
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Borsa: Europa debole a meta' seduta, a Milano (-0,1%) focus su Stellantis e banche
(Il Sole 24 Ore Radiocor) - The automotive sector is in the spotlight on European stock markets, with shares in the sector posting the strongest gains on a day of little movement across the markets. On the Milan Stock Exchange, Stellantis is leading the way amongst Milan’s blue chips, whilst elsewhere in Europe, buying interest is also boosting Renault in Paris, as well as Volkswagen and Porsche in Frankfurt.
Driving the buying is, on the one hand, investors’ shift towards stocks more closely linked to the real economy, and, on the other, the positive news on the tariffs front coming from the United States. The US and Canada are, in fact, close to a new trade agreement, which is why US President Donald Trump has announced a three-day suspension of the 50 per cent tariffs on imports that were due to come into force today. Trump, for his part, announced via Truth Social that ‘Canada and the United States, subject to the finalisation of the documents, have reached an agreement’, whilst Canadian Prime Minister Mark Carney spoke of ‘substantial progress’ in the negotiations and ‘a great deal of work still to be done’ to reach an agreement.
There is no doubt that the automotive sector is directly affected by the US-Canada negotiations, and the treatment of cars is one of the main issues that remains unresolved. According to Reuters, the two countries are reportedly discussing a possible reduction in tariffs on Canadian cars to 15 per cent from the current 25 per cent.
For Stellantis, this issue is particularly significant, given that the group has a major manufacturing presence in North America and has already had to relocate production of the Jeep Compass from Canada to Illinois precisely because of tariff tensions. Furthermore, the group is assessing the future of its plant in Brampton, Ontario. The market therefore appears to be interpreting the negotiations as a possible postponement or easing of tariffs, leading to a reduction in the risk to manufacturers’ costs and margins and greater clarity on the commercial outlook in North America.
