Trump Tariff Fallout: Stellantis Announces U.S. Layoffs Amid Plant Shutdowns in Canada and Mexico

The ripple effects of newly imposed Trump tariffs are beginning to hit the North American auto industry, with Stellantis announcing temporary layoffs for 900 U.S. hourly workers. The decision comes after the automaker was forced to pause production at key assembly plants in Canada and Mexico, citing tariff-related disruptions. Stellantis confirmed that it is halting operations at its Windsor, Ontario and Toluca, Mexico assembly plants, which supply several popular models, including the Chrysler Pacifica, Dodge Charger Daytona, Jeep Compass, and the upcoming electric Wagoneer S.

US Workers Caught in the Middle

The 900 U.S. workers impacted by these Stellantis shutdowns are employed at five manufacturing sites in the Midwest: Warren Stamping Plant (Michigan), Sterling Stamping Plant (Michigan), Indiana Transmission Plant (Kokomo, Indiana), Kokomo Transmission Plant (Indiana) and Kokomo Casting Plant (Indiana). 

These plants produce parts like powertrains and stampings that are critical to the assembly lines in Canada and Mexico. With production paused abroad, the demand for these parts has temporarily vanished. While most workers are initially protected from lost wages under union agreements, prolonged shutdowns could result in eventual financial consequences, even for those with contractual safeguards.

Tariff Pressure Triggers Shutdowns

Starting Monday, Stellantis’ Windsor plant—which employs approximately 4,500 hourly workers—will shut down operations for at least two weeks. Similarly, the Toluca plant in Mexico, employing 2,400 hourly workers, will remain closed through the end of April. In an internal memo, Antonio Filosa, Stellantis’ Chief Operating Officer for the Americas, said the company is “continuing to assess the medium- and long-term effects of these tariffs” while making short-term decisions to protect the business. “These are actions we do not take lightly,” Filosa wrote. “We understand the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders… as we work to manage and adapt to these changes.”

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Labor Unions Push Back

The decision has sparked a sharp backlash from both US and Canadian labour unions.

United Auto Workers (UAW) President Sean Fain slammed Stellantis, accusing the company of using workers as “collateral damage” to make up for leadership missteps. “These layoffs are a completely unnecessary choice,” Fain said. “It’s more of the same, and everything that’s wrong with our broken trade system.”

Interestingly, despite past political tensions, UAW has supported former President Trump’s tariff policies, believing they could ultimately bring production back to U.S. soil. However, union officials also admit that any reshoring of manufacturing would take months, if not years, to implement.

Unifor, the Canadian autoworkers’ union, echoed the criticism. “Trump is about to learn how interconnected the North American production system is,” said Unifor President Lana Payne. “Autoworkers are paying the price for that lesson—before the tariffs even take effect.”

As trade tensions mount, the auto sector finds itself once again in the political crossfire, with thousands of jobs hanging in the balance and the fear of more layoffs looming.