Stellantis is pausing production in Mexico and Canada and laying off U.S. workers after Trump’s expanded tariffs hit the auto industry.
Automaker Stellantis says it is pausing production at one assembly plant each in Mexico and Canada, and temporarily laying off 900 workers at five U.S. facilities, following the announcement of tariffs by U.S. President Donald Trump.
This comes as Trump expanded tariffs to a 10% baseline on all imports. These levies follow the 25% duties on auto imports announced last week, which sent shockwaves through the global auto industry.
In a letter to employees, 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 on our operations, but also have decided to take some immediate actions."
Stellantis said the Toluca Assembly plant in Mexico, where the Jeep Compass and Jeep Wagoneer S are produced, will shut down for the month of April. Workers at Toluca will continue to report to work and receive pay but will not produce vehicles.
Mexico’s President Claudia Sheinbaum said the production pause at the Stellantis plant in Mexico is temporary and that the company is not planning job cuts, following discussions with the firm through Economy Secretary Marcelo Ebrard.
While goods from Mexico and Canada that comply with the trade agreement between the three countries will largely remain exempt under Trump's order, auto exports, along with steel and aluminum, fall under separate tariff policies.
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