Trump's temporary tariff exemption for Mexico sparks positive reaction Stellantis (STLA.US) vows to expand US auto production

Stellantis(STLA.US) said on Thursday that it supported US President Donald Trump's goal of producing more cars in the US and thanked him for granting a one-month tariff exemption to Canada and Mexico.

The White House said on Wednesday that the US government would exempt auto products from 25% tariffs on imports from Mexico and Canada for one month, as long as auto manufacturers abide by existing free trade rules.

"We share President Trump's goal of producing more American cars and creating lasting jobs in America. We look forward to working with him and his team," Stellantis said.

Stellantis shares rose 3.4% in early European trading. Earlier this week, the company's shares fell to €10.84, the lowest since the creation of Stellantis in January 2021 from the merger of Fiat Chrysler and Peugeot's parent, PSA.

Stellantis announced investments in its US business when Trump took office in January and said it was "fully committed to the president's determination to make the US auto industry great again."

Stellantis has factories in Mexico and Canada in addition to US plants. Analysts estimate that about 40% of the cars it sells in the US are imported from Mexico and Canada.

The US market has traditionally been Stellantis' most profitable, but the group's operating profit fell 64% last year as sales and inventories in the US market declined.

Carlos Tavares, the chief executive, left the company in December after poor results, and Stellantis is looking for a new chief executive, with the group currently run by chairman John Elkann.

Elkann is a descendant of the Agnelli family of Italy, which through its investment holding company Exor is Stellantis' largest single investor. Elkann met with Trump in Washington in January, when Trump began his second term.