North American sales of Stellantis brand cars could drop as much as 109,000 units in Q2|harry_nl|CC BY-NC-SA 2.0

Jeep and Dodge maker Stellantis announced Monday that it expects a $2.68 billion loss for the first half of the year, citing tariffs imposed by President Donald Trump.

In April, Trump introduced 25% tariffs on autos and auto parts—though he later rolled them back. His administration argues the move will strengthen domestic carmakers.

However, anticipating the levies would affect its car manufacturing costs, Stellantis temporarily paused production at two plants in Canada and Mexico and laid off 900 employees in US facilities in Michigan and Indiana.

The automaker’s North American sales could drop as much as 109,000 units in Q2, with reduced imports from Canada and Mexico largely to blame.

Stellantis is likely to release its half-year financials on July 29. The steep profit decline led to the resignation of then-CEO Carlos Tavares. Antonio Filosa, appointed in May, now faces a challenging road ahead.