The economic world is in turmoil following the introduction of recent import tariffs by Donald Trump, with Stellantis responding promptly to protect its financial interests through a series of drastic measures. Facing the new 25% tariff on automotive imports to the USA, which is unsustainable for manufacturers, the company has announced the layoff of 900 American employees and 4,500 hourly Canadian workers.
Stellantis forced to lay off workers in the United States and Canada after Trump’s tariffs
As we already wrote in an article this morning, the Windsor plant in Ontario will suspend activities for two weeks starting April 7. This facility, where the Chrysler Pacifica minivan and the new electric Dodge Charger Daytona are produced, will undergo a forced shutdown, although demand for the latter model was already low.
Stellantis has announced that the Mexican plant in Toluca will also stop production for the entire month of April. The Jeep Compass and Wagoneer S are assembled here, both affected by the new tariffs. Curiously, Mexican employees will still have to report to work during this period of inactivity.
In an internal communication viewed by CNBC, Stellantis‘ North American manager confirmed the direct link between these decisions and Trump’s tariff policy, explaining that the company is still evaluating the medium and long-term effects, but had to act immediately.
These difficulties add to an already problematic situation for the group: in the first quarter, sales had already decreased by 12%, with the Dodge brand suffering particularly, whose deliveries collapsed by 49%, partly due to the discontinuation of the gasoline-powered Charger and Challenger models.