“We thank President Trump for the decision,” Stellantis said in a statement, after the White House said yesterday Trump would exempt automakers from his 25% tariffs on the two countries for one month as long as they comply with existing free trade rules.

“We share the president’s objective to build more American cars and create lasting American jobs.

“We look forward to working with him and his team,” Stellantis said in a statement.

Its Milan-listed shares were up 3.4% in European early trading.

Earlier this week the shares hit €10.84, their lowest since Stellantis was created in early 2021 from the merger of Fiat Chrysler and Peugeot owner PSA.

The company, which at the start of Trump’s presidency in January had announced investments at its US operations, said it strongly supported “his determination to enable the American automotive sector to thrive”.

Besides its US plants, Stellantis operates facilities in Mexico and Canada.

The company imports from Mexico and Canada around 40% of the vehicles it sells in the US, according to analyst estimates.

Falling sales and bloating inventories in the US, traditionally Stellantis’ most profitable market, cost the group a 64% operating profit drop and a €6 billion (US$6.5 billion)cash burn last year.

The group is currently steered by chairman John Elkann as Stellantis searches for a new chief executive after poor performance led to the exit of CEO Carlos Tavares in December.

Elkann is the scion of Italy’s Agnelli family, which is Stellantis’ single largest investor through its investment holding Exor.

He met Trump in Washington as the US president was starting his term in office.