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.
- 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.
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