Stellantis temporarily halts production at Canada, Mexico plants due to tariffs – US sites also affected

Stellantis said on Thursday (April 3, 2025) it was temporarily suspending operations at one assembly plant each in Canada and Mexico as well as five facilities in the United States, report Associated Press and Reuters.

This comes following the 25% tariff on imported cars and car parts announced by US president Donald Trump in early March this year. A one-month exemption on auto tariffs was granted shortly after the announcement so automakers could get things in order, but this has since ended. On Wednesday (April 2), Trump announced reciprocal tariffs that will see a 10% baseline tariff be imposed on all countries, with some countries hit with individualised tariffs that go as high as 50%.

Production at the company’s Windsor assembly plant in Canada will be temporarily halted for two weeks, with operations only set to resume from April 21. This is said to impact 4,500 workers at the Windsor plant, which is where the Chrysler Pacifica and Voyager minivans as well as the Dodge Charger Daytona are made.

Meanwhile in Mexico, the Toluca assembly plant, where the Jeep Compass and Wagoneer S are made, will pause production for the month of April, starting on April 7. Workers will continue to report to work and get paid but they will not make vehicles, the company said.

Sites in the US that will temporarily suspend operations include the Stellantis’ Warren and Sterling stamping plants in Michigan, along with its Indiana transmission plant as well as transmission and casting plants in Kokomo. The move will result in the temporary layoff of 900 US employees.

“We understand that the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the US, Canada, and Mexico, as we work to manage and adapt to these changes,” wrote Antonio Filosa, Stellantis’ CEO for the Americas, wrote in an email sent to employees.

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