Shares of Stellantis N.V. (NYSE:STLA) are trading higher Wednesday amid reports that the United States and European Union are nearing an agreement on a new trade deal that could significantly alter tariff rates on automotive imports.
What To Know: According to the Financial Times, the deal under discussion would impose a 15% tariff on European imports, aligning with terms recently agreed upon between the U.S. and Japan. The proposed agreement would prevent U.S. President Donald Trump from raising tariffs on European goods to 30% starting Aug. 1.
The current EU response appears to be a reluctant but strategic concession. EU diplomats said the bloc is considering "reciprocal levies" to maintain the status quo and avoid escalation.
Since April, European exporters have faced an additional 10% tariff on goods bound for the U.S., on top of pre-existing duties averaging 4.8%. Under the new deal, these tariffs would be consolidated into the 15% rate. Notably, tariffs on cars, which currently stand at 27.5%, would drop to 15%.
If the U.S. were to abandon negotiations or move forward with the threatened 30% tariff rate, the EU has outlined potential retaliation. This could include invoking its anti-coercion instrument to limit U.S. access to EU public tenders, restrict trade flows, or revoke intellectual property protections. Brussels is also preparing a retaliatory tariff package worth up to €93 billion.
STLA Price Action: Stellantis shares were up 11.2% at $10.31 at the time of writing, according to Benzinga Pro.
Read Next:
- Tesla Is Still Selling Glossy Future – GM Just Shipped 111% More EVs
Image Via Shutterstock.
