Stellantis Urges Trump to Lower Tariffs on Canada and Mexico

(Alliance News) — The upcoming 2026 review of the USMCA trade agreement is shaping up to be a pivotal moment for North America's automotive industry.

In anticipation of these talks, Stellantis has sent a letter to the Office of the United States Trade Representative, requesting that the new Trump administration revisit tariffs imposed on vehicles imported from Canada and Mexico that comply with the agreement's regulations, according to a report by MF-Milano Finanza on Wednesday.

Although Donald Trump previously hailed the USMCA as a cornerstone of his trade policy, the White House now intends to reassess the tariff system. The US currently applies tariffs of up to 25% on non-American components, even for vehicles that meet the treaty's requirements, resulting in added costs and uncertainty for manufacturers. Numerous letters sent to the USTR between September and November indicate near-unanimous support for maintaining the agreement, though opinions differ on how it should be revised.

Stellantis has reiterated its support for the USMCA and its rules of origin, which the company views as essential for bolstering the local supply chain and investments in the United States. However, Stellantis contests the imposition of steep tariffs on compliant vehicles, emphasizing that adhering to rules of origin already entails significant costs not faced by Asian competitors, who can export with a fixed tariff of 15%.

The group, led by John Elkann and Antonio Filosa, has proposed two alternatives: harmonizing trade agreements with the EU, Japan, and South Korea to align with USMCA rules, or eliminating or drastically reducing tariffs on Canadian and Mexican vehicles that meet compliance standards.

The USTR is set to hold an initial public hearing soon, while the review must be completed by July 2026. Stellantis has expressed its readiness to cooperate, warning that maintaining high tariff barriers among USMCA partners would weaken North American production and benefit Asian manufacturers at the expense of U.S. jobs.

By Antonio Di Giorgio, Alliance News reporter

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