Trump Threatens 10% Tariffs on Europe, Impacting Autos and Luxury Sectors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2026
0mins
Source: CNBC
- Escalating Tariff Threats: Trump has pledged to impose a 10% tariff on eight European countries starting February 1, with plans to increase it to 25% by June 1, which could significantly negatively impact their economies.
- Automotive Sector Hit: German automakers like Volkswagen, BMW, and Mercedes-Benz saw stock declines of over 2.5% in response to Trump's tariff threats, highlighting the sector's vulnerability to trade policy uncertainties that could disrupt global supply chains.
- Luxury Market Volatility: Shares of French luxury giants LVMH and Kering fell by 3.5% and 2.6%, respectively, indicating that even the high-end market is not immune to the economic downturn risks posed by tariffs, potentially affecting consumer spending.
- Pharma Sector Risks: The EU's pharmaceutical exports to the U.S. reached €84.4 billion in the first three quarters of last year, and Trump's tariff threats could significantly impact this crucial export sector, exacerbating economic uncertainties.
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Analyst Views on STLA
Wall Street analysts forecast STLA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STLA is 11.81 USD with a low forecast of 9.33 USD and a high forecast of 15.15 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 9.700
Low
9.33
Averages
11.81
High
15.15
Current: 9.700
Low
9.33
Averages
11.81
High
15.15
About STLA
Stellantis N.V., formerly Fiat Chrysler Automobiles N.V., is a holding Company based in the Netherlands and operates as an automaker and a mobility provider. The Company is engaged in designing, engineering, manufacturing, distributing and selling vehicles, components and production systems. The Company has industrial operations in more than 30 countries and sells its vehicles directly or through distributors and dealers in more than 130 countries. The Company designs, manufactures, distributes and sells vehicles for the mass-market under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands. In addition, the Company designs, manufactures, distributes and sells luxury vehicles under the Maserati brand. The Company's brand portfolio also includes Peugeot, Citroen, DS Automobiles, Opel and Vauxhall. It offers a wide variety of vehicle choices from luxury and mainstream passenger vehicles to pickup trucks, sport utility vehicle (SUVs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stellantis Cuts Prices to Boost Sales in France
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- Market Restructuring Plan: Stellantis France head Xavier Duchemin stated that the company has decided to implement a more aggressive commercial strategy starting at the end of 2025 and amplifying efforts in early 2026, focusing on price cuts and brand repositioning to regain volumes.
- Brand Positioning Challenge: Despite Opel's quality, Duchemin noted that due to the unique characteristics of the French market, the company cannot sell these cars at previously desired prices, indicating a strategic adjustment and risk-taking in a competitive landscape.
- Future Outlook: Stellantis's pricing strategy not only addresses current market challenges but also reflects confidence in future sales growth, which is expected to positively impact the company in the competitive European market.
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