Stellantis Lays Off 900 Workers, Pauses Production Amid Trump’s Auto Tariffs

Stellantis NV (NYSE: STLA) is laying off 900 workers across five U.S. plants and halting operations at two assembly plants in Mexico and Canada, following new auto tariffs imposed by former U.S. President Donald Trump. The move comes after Trump announced a 25% duty on auto imports last week, followed by a 10% baseline tariff on all imports, sending shockwaves through the global automotive industry.

Antonio Filosa, Stellantis’ COO for the Americas, said in a letter to employees that the company is evaluating the long-term effects of the tariffs but is taking immediate steps, including temporary production pauses. The Windsor Assembly plant in Canada, producing the Chrysler Pacifica and Dodge Charger Daytona, will shut down for two weeks, impacting 4,500 workers. In Mexico, the Toluca plant, which manufactures the Jeep Compass and Wagoneer S, will halt vehicle production for April, though employees will continue receiving pay.

Stellantis shares dropped 9.3% on Thursday, while Ford, GM (NYSE: GM), and Tesla (NASDAQ: TSLA) also saw declines. Nearly half of U.S. vehicle sales last year were imports, per GlobalData.

Union leaders expressed outrage, with UAW’s Shawn Fain calling the layoffs “completely unnecessary.” The affected U.S. plants include Warren and Sterling stamping facilities, Indiana and Kokomo transmission plants, and Kokomo Casting. Romaine McKinney III of the Warren plant union noted worker frustration, saying, “It’s pure devastation.”

Although the White House claims tariffs will bring back U.S. jobs and raise wages, critics argue they hurt workers and ignore North America’s deeply integrated auto supply chain. Unifor’s Lana Payne warned of the rapid impact, stating layoffs began even before tariffs took effect.

Analysts expect rising car prices as automakers adjust production and supply strategies.