Trump Tariffs Prompts Stellantis To Halt Canada, Mexico Production

it appears automaking giant Stellantis are feeling the effects of the stiff new tariffs imposed by US President Donald Trump on imported cars and car parts.

The stiff new tariffs imposed by US President Donald Trump has reportedly prompted automaking giants Stellantis to temporarily suspend operations at one assembly plant each in Canada and Mexico.

Apart from that, the tariffs are also set to affect five of the firm’s domestic facilities across America itself, reports both Reuters and AP.

Aptly, this comes following the 25% tariff on imported cars and car parts announced by US President Trump last month (March). Notably, a one-month exemption on auto tariffs was granted to allow automakers to get things in order, but this has since ended.

Earlier this week on Wednesday (April 2), Trump had also announced reciprocal tariffs entailing to a 10% baseline tariff be imposed on all countries, with some countries levied with individualised tariffs as high as 50% included too.

A new Dodge Charger Daytona being assembled at Stellantis' Windsor plant in Canada. Said facility will see up to 4,500 jobs when operations there are temporarily halted for two weeks.

For Stellantis, the firm’s latest measure sees its Windsor assembly plant in Canada halted for two weeks, and up to 4,500 of the plant’s staff will be impacted.  Said plant churns out key US market models like the Chrysler Pacifica and Voyager minivans, as well as the new Dodge Charger Daytona.

The firm’s other halted plant is situated in Toluca, Mexico, which is where both the Jeep Compass and Wagoneer S – also critical to the US market – are assembled. Here, Stellantis will pause production for the month starting April 7, though workers will continue to report in and get paid.

As for Stellantis’ five domestic American plants, which encompasses both its Warren and Sterling stamping plants in Michigan, its transmission plant in Indiana, as well as its transmission and casting plants in Kokomo, their operations will be suspended temporarily and affect up to 900 workers.

Also affected are five of the firm's domestic American plants and up to 900 workers are set to be affected too.

“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,” wrote Antonio Filosa, Stellantis’ CEO for the Americas, in a e-mail to employees.

It is also worth noting that Stellantis had already endured a sales drop of 12% for the first quarter (Q1) of 2025 ahead of the newly imposed tariffs. The firm’s hardest hit brand was Dodge, which saw deliveries slashed by 49% to just 21,731 units, and these production halt might add to that too.