Stellantis Halts Production at Plants in Canada and Mexico Amid Trump’s Auto Tariffs

Detroit, April 3, 2025 – Automaker Stellantis has announced a temporary suspension of production at two of its North American assembly plants, citing the immediate impact of President Donald Trump’s newly imposed 25% tariffs on imported vehicles. The decision, confirmed by the company on Thursday, affects the Windsor Assembly Plant in Ontario, Canada, and the Toluca Assembly Plant in Mexico, with ripple effects leading to temporary layoffs of approximately 900 U.S. workers.

The tariffs, which took effect on April 3, 2025, apply to all vehicles imported into the United States, including those from Canada and Mexico—key players in the integrated North American automotive supply chain. Stellantis, the parent company of brands such as Jeep, Chrysler, Dodge, and Ram, is the first major automaker to enact such significant operational changes in response to the policy, underscoring the swift and profound implications for the industry.

According to a statement from Stellantis North American Chief Operating Officer Antonio Filosa, the company is pausing production to assess the broader ramifications of the tariffs. “We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” Filosa wrote in an email to employees, as reported by CNBC. The Windsor plant, which produces the Chrysler Pacifica minivan and the recently launched Dodge Charger Daytona EV, will halt operations for two weeks starting April 7, resuming the week of April 21. Meanwhile, the Toluca facility, responsible for assembling the Jeep Compass SUV and Jeep Wagoneer S EV, will suspend production for the entire month of April, also beginning April 7.

The production pauses will directly impact supporting facilities in the United States, with temporary layoffs announced for workers at the Warren and Sterling stamping plants in Michigan, as well as the Indiana and Kokomo transmission plants and Kokomo casting facility in Indiana. “Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations,” Filosa noted, per CNBC. In Mexico, workers at the Toluca plant will continue to report to the facility but will not produce vehicles, due to contractual obligations, a company spokeswoman told AP News.

The move comes as Stellantis navigates a challenging period marked by internal struggles and external pressures. The company has faced slumping sales in North America—historically its primary profit center—leading to the resignation of CEO Carlos Tavares in December 2024, as reported by AP News. Amid rising competition and shifting market dynamics, Stellantis had already initiated leadership changes and announced plans to reopen an assembly plant in Illinois and produce the next-generation Dodge Durango in Detroit earlier this year. Now, Trump’s tariffs add a new layer of complexity, prompting the automaker to adapt quickly to what Filosa described as “current market dynamics” in his email to employees, according to Yahoo Finance.

The White House has framed the 25% auto tariffs as a strategy to bolster domestic manufacturing, a cornerstone of Trump’s economic agenda. However, the policy has sparked concern among automakers reliant on cross-border supply chains established under the U.S.-Mexico-Canada Agreement (USMCA). Stellantis’ swift response contrasts with competitors like Ford and General Motors, which have not yet idled production but are also grappling with the tariffs’ implications. Ford, for instance, announced a temporary discount program dubbed “From America, For America” to offset potential price hikes, while GM reported strong first-quarter sales ahead of the tariff rollout, per CNBC.

The broader economic fallout remains uncertain. Canada’s Prime Minister Mark Carney signaled on Thursday that the country would match U.S. tariffs, a retaliatory move that could escalate tensions, as noted by Value The Markets. Analysts warn that the tariffs could increase vehicle prices for U.S. consumers—potentially by thousands of dollars—while disrupting the deeply interconnected North American auto industry. Stellantis, for its part, plans to “continuously monitor the situation to determine if further action is necessary,” according to a company statement cited by AP News.

As the automotive sector braces for a turbulent period, Stellantis’ production halt serves as an early indicator of the tariffs’ far-reaching consequences. “We understand that the current environment creates uncertainty,” Filosa reassured employees, emphasizing ongoing engagement with government leaders, unions, suppliers, and dealers across the U.S., Canada, and Mexico, as reported by Yahoo Finance. For now, the company’s decisive action highlights the delicate balance between policy shifts and industrial stability in a globalized economy. 17GEN4.com