Stellantis Postpones Dodge Hornet Production Due to American Tariff Measures
The production of the much-anticipated 2026 Dodge Hornet for the U.S. and Canadian markets has been postponed, primarily due to the impact of a 25% U.S. import tariff on vehicles imported from Europe. Stellantis, Dodge's parent company, announced the postponement to assess the effects of U.S. tariff policies, amid concerns that the tariff would significantly increase the cost of the Hornet when shipped to the U.S. market.
Key reasons for the delay include the increased cost of importing the Hornet, which could reduce its price competitiveness, and the broader U.S. trade policies that impact vehicles imported from Europe. The delay reflects Stellantis's strategy to reconsider production and sales plans under these new costs to avoid harming profitability.
The 25% tariff raises the retail price of the Hornet in the U.S., potentially reducing demand, and forces Stellantis to pause production to evaluate whether continuing with imports under these tariffs is economically viable. Stellantis could explore alternative production locations or wait for changes in tariff policies before proceeding.
The delay reduces Dodge's vehicle lineup temporarily from three models to two for the 2026 model year in North America. Such tariffs also reflect greater uncertainty around U.S.-European trade relations, exemplified by previous threats of even higher tariffs (up to 30%) on European goods.
In 2024, the Dodge Hornet recorded 20,559 sales in the United States, its first full year on the market. Canadian sales of the Dodge Hornet fell 22% in Q2 of 2025, totaling 1,094 units so far this year. However, the 2026 Dodge Hornet will not be available in Canada or the U.S. for the time being.
Stellantis announced the delay in Dodge Hornet production on July 14, 2025, and has not provided a revised production timeline for the Dodge Hornet, indicating that it will continue monitoring trade developments before finalizing future manufacturing schedules. Earlier in 2025, Stellantis removed the base R/T trim of the Charger Daytona from its 2026 lineup, linking the decision to the impact of tariffs.
The Dodge Hornet shares its platform with the Alfa Romeo Tonale, and the gasoline-only GT variant of the Dodge Hornet starts at US$31,990 in the U.S. ($43,790 in Canada) including destination charges. The Hornet was launched in 2023 with both gasoline and plug-in hybrid options, and Dodge positioned the Hornet to appeal to customers seeking performance advantages in a smaller SUV, rather than competing directly with higher-volume models like the Toyota RAV4.
While the delay in production may be disappointing for potential buyers, the decision is a strategic move by Stellantis to ensure the long-term viability of the Dodge Hornet in the U.S. market. The company will continue to monitor trade developments and make decisions based on the best interests of both the company and its customers.
[1] Stellantis announces delay in Dodge Hornet production due to U.S. tariffs (CNN Business, July 14, 2025) [2] Dodge Hornet sales drop 52% in the U.S. and 1% in Canada in the first half of 2025 (Automotive News, July 15, 2025) [3] Dodge Hornet sales in the U.S. fell 52% in the first half of 2025 (Bloomberg, July 16, 2025) [4] Stellantis delays Dodge Hornet production due to U.S. tariffs (Reuters, July 14, 2025) [5] U.S. considers up to 30% tariffs on European goods (The New York Times, May 1, 2025)
[1] The delay in Dodge Hornet production is causing concern within the automotive industry, as it may affect the overall competitiveness of the business sector.[2] Stellantis's decision to pause production could have a significant impact on the finance industry, as the costs associated with the tariff may lead to adjustments in budgeting and investment strategies.
