Stellantis Halts Car Production in Canada, Mexico After Trump’s Tariffs

3 Apr at 1:00 pm

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Stellantis Halts Car Production in Canada, Mexico After Trump’s Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Stellantis is pausing production at its plants in Canada and Mexico following President Trump’s 25% auto import tariff announcement. The move will lead to 900 temporary U.S. layoffs, as the automaker adjusts to new market conditions.

FILE – The Stellantis sign is seen outside the Chrysler Technology Center, Jan. 19, 2021, in Auburn Hills, Mich. Stellantis on April 26, 2023. (AP Photo/Carlos Osorio, File)

Trump Tariffs Hit Stellantis – Quick Looks

Production Paused: Plants in Windsor, Canada and Toluca, Mexico.
Layoffs Begin: 900 U.S. workers temporarily sidelined.
Tariff Reaction: Company cites 25% import tax shift.
Michigan, Indiana Impacted: Temporary job cuts hit U.S. plants.
Restart Timeline: Windsor reopens April 21, Mexico halted all month.
Internal Memo: COO Filosa says changes are market-driven.
Broader Troubles: Stellantis battling sales slump and turnover.
Recent Moves: New leadership, Illinois and Detroit revamps planned.

File – Carlos Tavares, Chief Executive Officer of Stellantis, left, and Mike Koval, RAM Brand Chief Executive Officer, introduces the REV Ram 1500 at the New York International Auto Show in New York on April 5, 2023. United Auto Workers President Shawn Fain’s focus on CEO pay is part of a growing trend as emboldened labor unions cite the widening wealth gap between workers and the top bosses to bolster their demand for higher wages and better working conditions. (AP Photo/Craig Ruttle, File)

Stellantis Halts Car Production in Canada, Mexico After Trump’s Tariffs

Deep Look

Stellantis Shuts Down Canadian, Mexican Plants After Trump’s Tariff Bombshell

Automaker Stellantis announced Thursday it will temporarily halt vehicle production at two of its major facilities — one in Canada and another in Mexico — following President Donald Trump’s newly implemented 25% tariff on imported vehicles. The company confirmed the move will result in 900 temporary layoffs across several U.S. manufacturing sites.

The production pause will affect Windsor Assembly Plant in Ontario during the weeks of April 7 and 14, with a planned restart the week of April 21. Simultaneously, Stellantis will halt all operations at its Toluca Assembly Plant in Mexico for the entire month of April, beginning the same week.

The tariffs — part of Trump’s broader push to boost domestic manufacturing — have sent shockwaves through the auto industry, particularly among multinational manufacturers like Stellantis that rely heavily on cross-border production and supply chains.

U.S. Workers to Feel Ripple Effects

Though the Canadian and Mexican sites are overseas, the impact is hitting American workers directly. Stellantis confirmed that temporary layoffs will extend to several of its Michigan and Indiana locations, including the Warren and Sterling stamping plants, and the Kokomo casting and transmission facilities.

In a company-wide email, North American COO Antonio Filosa assured employees that Stellantis is adapting quickly.

“These actions are necessary given the current market dynamics,” Filosa wrote. “We are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers.”

While expressing empathy for affected employees, Filosa emphasized that these are “short-term adjustments” made in response to unexpected policy shifts.

Trump’s Tariff Gamble Reshaping Auto Industry

The 25% tariff, announced late last month, is aimed at reshoring American auto production. The White House argues it will stimulate U.S. factories, but critics warn it raises production costs, squeezes global supply chains, and may spark retaliatory measures from trade partners.

Stellantis now finds itself in the middle of that fallout, facing both economic strain and logistical disruption just as it tries to recover from internal challenges.

Stellantis Already Battling Headwinds

The tariff fallout compounds a difficult stretch for Stellantis. In December, CEO Carlos Tavares stepped down amid mounting frustration over sluggish sales and declining market share in key North American segments. Tavares’ resignation came just weeks after the company reorganized its top executive team, appointing new leaders for both North American and European operations.

Though Stellantis had previously announced plans to revive an Illinois assembly plant and shift production of the next-generation Dodge Durango to Detroit, the latest move may stall progress.

Stellantis’ North American division has historically been a profit engine, particularly through brands like Ram and Jeep, but the company has seen mounting pressure from rising competition and changing consumer preferences, especially in EV markets.

As the automotive sector undergoes a global transformation, Stellantis now faces a twin challenge: navigating shifting U.S. policy and revitalizing its own operational model.