Stellantis’ updated financial guidance was based on an assumption that current tariff and trade rules will remain in place. It comes shortly after the U.S. and European agreed to a trade framework that means U.S. President Donald Trump’s administration will impose a blanket tariff of 15% on most EU goods.

MILAN (AP) — Stellantis hopes to counteract some of the expected 1.5 billion-euro ($1.7 billion) cost of tariffs this year by boosting North American profitability with new model launches like the discontinued Jeep Cherokee, the carmaker’s new CEO said on Tuesday.