Detroit, April 3, 2025 – The fallout from President Donald Trump’s newly imposed tariffs escalated today as Stellantis NV, the maker of Jeep, Ram, and Chrysler vehicles, announced it will temporarily lay off 900 workers across five U.S. facilities. The decision, confirmed Thursday morning, comes hours after a 25% tariff on all foreign-made cars and auto parts took effect, prompting the automaker to pause production at assembly plants in Mexico and Canada as well. The move marks one of the first tangible impacts of Trump’s aggressive trade policy, unveiled this week, which has already roiled global markets and sparked threats of retaliation.

Immediate Reaction to Tariffs

Stellantis revealed the layoffs in a statement from North American Chief Operating Officer Antonio Filosa, emailed to employees at 8 a.m. PDT. The affected U.S. plants—powertrain and stamping facilities supplying parts to the idled North American factories—include Warren Stamping and Sterling Stamping in Michigan, and Indiana Transmission, Kokomo Transmission, and Kokomo Casting in Indiana. In Canada, the Windsor Assembly Plant, which produces Chrysler Pacifica minivans and Dodge Charger Daytonas, will halt operations for two weeks starting Monday, April 7. Mexico’s Toluca Assembly, home to Jeep Compass and Wagoneer S production, will shut down for the entire month of April.

“We are continuing to assess the medium- and long-term effects of these tariffs on our operations,” Filosa wrote, signaling a cautious approach as the company navigates the trade upheaval. The White House declined immediate comment, but Trump, speaking at a Wednesday cabinet meeting, doubled down: “This is Liberation Day for American workers—tariffs will bring jobs back home.”

A Ripple Effect Across Borders

The tariffs, effective 12:01 a.m. PDT Thursday, impose a 25% levy on vehicles and parts not made in the U.S., though components qualifying under the United States-Mexico-Canada Agreement (USMCA) are temporarily exempt until May 3. Stellantis, a transatlantic automaker with deep North American roots, cited the need to “adapt to these changes” as it idles Windsor (4,500 workers) and Toluca, triggering the U.S. layoffs. Unifor, Canada’s union representing Windsor workers, blasted the move. “Trump’s about to learn how interconnected our production system is the hard way—with auto workers paying the price,” said National President Lana Payne.

Posts on X reflect the rapid backlash: “Stellantis laying off 900 U.S. workers already—tariffs aren’t winning, they’re crushing us,” one user wrote. Another noted, “The BS begins,” linking to ABC News coverage of the announcement.

Market Chaos and Industry Response

The announcement sent Stellantis shares tumbling 7.7% to $10.40 by midday in New York, mirroring a broader U.S. stock slide—S&P 500 down 3.3%, Dow 2.6%—as tariff fears gripped investors. The auto industry, reliant on cross-border supply chains, is bracing for chaos. S&P Global Mobility data shows 2.5 million of Mexico’s 4 million vehicles produced in 2024 went to the U.S., with Stellantis among the hardest hit alongside Nissan and GM. United Auto Workers President Shawn Fain condemned the layoffs: “Stellantis has the money and capacity to employ thousands more—not cut them.”

Canada’s Prime Minister Mark Carney retaliated Thursday, announcing 25% counter-tariffs on U.S. vehicles non-compliant with USMCA, vowing to redirect funds to affected workers. “This ruptures the global economy,” Carney warned, as Mexico weighs similar measures.

Trump’s Tariff Vision Meets Reality

Trump’s policy, pitched as a reset of America’s trade agenda, aims to revive manufacturing by taxing imports at rates from 10% (base) to 54% (China-specific). Yet, the Stellantis layoffs—announced before the auto tariff’s full impact—underscore immediate costs. “Tariffs don’t help the U.S. economy; we learned this with Smoot-Hawley,” one X user argued, referencing the 1930 act that deepened the Great Depression. Economists echo the concern: higher consumer prices and disrupted supply chains loom, with the Tax Foundation estimating a 0.4% U.S. GDP hit pre-retaliation.

As Stellantis assesses its next steps, the layoffs signal a rocky start to Trump’s tariff era. With bipartisan senators pushing a Trade Review Act to curb executive tariff power and global allies like the EU and China preparing counterstrikes, the stakes—and tensions—are only rising. Stay tuned as this story develops.