Stellantis May Step In To Help Suppliers Shoulder Tariff Costs

Stellantis is reportedly working on a plan to help its suppliers deal with the steep costs tied to the latest round of tariffs under former President Donald Trump’s renewed trade war policies.

According to a Bloomberg report, the automaker has quietly laid out a program where eligible suppliers could apply for financial help to make monthly tariff payments directly to the U.S. government. The effort was outlined by Marlo Vitous, Stellantis’ North American Head of Purchasing, during a closed-door meeting with suppliers in Detroit last week, a person familiar with the matter told Bloomberg.

The plan is still early in development, and Stellantis hasn’t officially commented. It’s not clear yet how much of the tariff costs Stellantis would be willing to cover, and suppliers would need to meet several internal criteria to qualify for support.

Industry insiders say the auto sector is already feeling the pressure from the new tariffs. A 25% tax on imported automobiles went into effect last Thursday, and a similar tariff on parts is expected by May 3. These measures are projected to significantly drive up costs and disrupt existing supply chains.

“They’re talking, with bated breath, about being willing to support suppliers with costs associated with tariffs,” said Mitch Zajac, an Automotive and Supply Chain Attorney with Butzel Long in Detroit. Zajac is advising suppliers on how to navigate the potential Stellantis support program.

He added that parts makers must pay the tariff fees to U.S. Customs and Border Protection before their shipments are allowed into the country. Rather than renegotiate and raise the price of parts in existing contracts, Stellantis is floating the idea of providing a monthly lump sum payment to offset the additional cost.

“There will be some sort of assessment of the criticality of the parts perhaps, or the ability to re-source or dual-source the parts,” Zajac noted. He also cautioned that the funding isn’t guaranteed and emphasized that details are still being finalized.

The effort shows how major automakers are trying to blunt the impact of trade policy changes that could destabilize their operations.