New Car Launches in the U.S. That Dodge Tariff Disruption

Jeep Recon: Navigating Tariff Uncertainty

Jeep, known for its rugged off-road vehicles, is also moving towards electric vehicles in a big way. The Jeep Recon, an all-electric SUV inspired by the Jeep Wrangler, is scheduled to be produced at Stellantis’ Toluca Car Assembly Plant in Mexico. Production is set to begin in early 2025, with the Recon being one of the most highly anticipated electric off-road SUVs.

However, despite the USMCA trade deal, which provides tariff exemptions for certain vehicles built in Mexico, there are complexities in meeting the rules of origin required for tariff-free access to the U.S. market. Reports have suggested that Stellantis is facing some challenges with ensuring that all their vehicles fully comply with these regulations. This has raised concerns about potential delays and additional costs, especially for vehicles like the Jeep Recon, which is aimed at the U.S. market. While the vehicle itself is built in Mexico, if it doesn’t meet the required threshold, tariffs could still apply.

Stellantis is also working to improve its production processes to better adapt to these trade regulations, and the Jeep Recon’s launch will likely serve as a test case for the company’s ability to navigate these new tariff-related challenges.

For more about Stellantis’ production strategies: Jeep's Electric Future.