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U.S. Tariffs Disrupt Auto Industry as Stellantis Halts Canadian and Mexican Operations

The newly imposed 25% tariffs on imported vehicles have led to Stellantis announcing temporary closures, affecting thousands of workers and intensifying global trade tensions.

La directrice générale du FMI, Kristalina Georgieva, le 24 octobre 2024
Des ouvriers transportent des mini-fourgonnettes Chrysler à l'usine d'assemblage Stellantis Windsor à Windsor (Ontario), au Canada, le 31 janvier 2025

Overview

  • The U.S. implemented a 25% tariff on imported vehicles and auto parts on April 3, 2025, as part of Donald Trump's broader trade policies.
  • Stellantis confirmed it will temporarily close its Windsor, Canada plant for two weeks starting April 7, 2025, impacting 4,000 workers.
  • Production at Stellantis' Mexican plants will also be halted, with ripple effects expected at U.S. facilities reliant on cross-border supply chains.
  • Canadian Prime Minister Mark Carney has proposed creating a fully Canadian automotive network to reduce reliance on U.S. trade policies.
  • Automakers, including Stellantis, Ford, and General Motors, are lobbying for reduced tariffs, warning of significant price hikes and economic fallout.