Stellantis soars on the Milan Stock Exchange. The US-Japan tariff agreement boosts the auto sector.

(Il Sole 24 Ore Radiocor) - Stellantis is in the spotlight on the Milan Stock Exchange, along with the entire European auto sector, after months of intense negotiations between the United States and Japan overnight signed a trade agreement that drastically cuts US President Donald Trump's tariffs against his main Asian ally from 25% to 15% . The agreement also includes the automotive sector, which alone accounts for a quarter of Japan's exports to the United States and is a major driver of Japan's trade surplus with the United States. In exchange, Tokyo announced it will finance investments in the United States up to a maximum of $550 billion.

"The agreement signals that the 25% tariff on cars, which until now has been kept separate from general duties such as those on steel and aluminum, is not an insurmountable taboo and can be negotiated, which gives hope that it will also be reduced for other countries, rebalancing the competitive situation at lower levels for everyone," explain analysts at Intermonte . The sector also benefits from the fact that Renault recorded a 1.3% increase in global sales in the first half of the year , reaching 1.16 million registrations. In Europe, its main market, the group recorded growth of 5.4% with 708,106 vehicles registered. Furthermore, yesterday, as markets opened, General Motors reported slightly better-than-expected second-quarter results, with revenue of $47.2 billion (+2% year-over-year, versus consensus of $45.9 billion), EBITDA of $3 billion (-32% but above consensus estimates of $2.9 billion), and earnings per share of $2.53 (-17% but better than consensus estimates of $2.35), although at the divisional level, the key North America region reported lower-than-expected margins (6% versus estimates of 6.7%). The 2025 guidance, which implies a decline in EBIT of more than 30% in the second half of the year versus a decline of 21% in the first half, was confirmed and is consistent with consensus expectations.

Iveco Group is rising steadily. Two factors are supporting the stock. The first, more general, is the tariff agreement signed overnight between Japan and the United States, drastically cutting the tariffs imposed by US President Donald Trump against his main Asian ally from 25% to 15%. The agreement also includes the automotive sector, boosting both the car and truck sectors. Iveco shares are also benefiting from the strong second-quarter results of US company Paccar, which exceeded expectations. Specifically, the US truck manufacturer exceeded second-quarter profit and revenue estimates, thanks to strong demand in the aftermarket parts segment. "The North American truck market is impacted by economic conditions, the uncertain impact of customs duties, and a weak freight market," said CEO Preston Feight.

For Iveco, discussions with Tata Motors, which is reportedly interested in acquiring the majority stake currently held by Exor, remain in the background. These rumors have boosted Iveco shares in previous trading sessions. The deal, which according to press reports is practically complete, must be preceded by the spin-off of the Defense division (which Leonardo and Rheinmetall are eyeing). This operation would allow the company to create a "lighter Iveco," more in line with Tata Motors' strategy, while also allowing expansion into the Indian market. The company will release its half-yearly financial statements next week, and updates on the matter are not ruled out.