The Return Of French Cars In The US Just Hit A Major Snag

Industry News

But Canada may still be in the cards.

French automaker PSA Group has been pondering its return to the United States for a while now. Before making the move, PSA is testing the water with a mobility app called Free2Move. PSA is most well known for its Peugeot and Citroen brands, but its luxury DS brand is the most likely to be brought back to the US. Unfortunately, PSA's plans to return to the US may be hampered by recent trade tariffs imposed by the US.

PSA's goal was to resume selling cars in the US by 2026, but Bloomberg reports that the French automaker may have to turn to Canada first if the US imposes a 25% tariff on imported cars. Larry Dominique, president of PSA North America, said “ Tariffs are on our minds, tariffs impact how fast and at what price point we import vehicles into the US. I’m crossing my fingers.” PSA has already focused on engineering new models that will be compliant with US safety and emissions regulations, but it may have been all for naught if the tariffs prevent the company from coming back.

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The Europeans Union and Canada reached a trade deal last year that would make it easy for PSA to sell cars there. The Canadian market makes a lot of sense for a French automaker, since part of the population already speaks French. We've been eagerly awaiting the return of French cars in the US, but our dreams may have ended before they even began.

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