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Stellantis halts production in Canada and Mexico amid U.S. tariffs, raising concerns

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Stellantis halts production in Canada and Mexico amid U.S. tariffs, raising concerns

2025-04-05 18:58 Last Updated At:19:57

The multinational automaker Stellantis has temporarily suspended production at its assembly plants in Canada and Mexico in response to the 25 percent U.S. tariffs on imported vehicles.

The company announced the production halt on Thursday, the same day the tariffs on all vehicles imported to the U.S. took effect, fueling widespread concern among industry professionals about potential income losses and growing uncertainty for the sector.

The shutdown will begin on Monday for two weeks at Stellantis' Windsor Assembly Plant in Ontario, Canada. It will last for the entire month of April at its Toluca Assembly Plant in Toluca, Mexico.

As a result, approximately 900 workers at the company's U.S. powertrain and stamping facilities will be temporarily laid off. Around 4,500 workers at Windsor will also be impacted by the production halt. Meanwhile, workers at Toluca will continue to report for work but will not be involved in vehicle production, though they will still be paid.

Stellantis' facility in Toluca has been a fixture since 1968, providing employment for roughly 3,000 people and producing the Jeep Compass and Jeep Wagoneer S. This production pause has raised concerns among both local residents and industry professionals about the future of Mexico's automotive industry.

"There will be an impact. Factory revenues will decrease, and people will lose their income," said Octavio Leyes, a local car dealer.

Guillermo Rosales Zarate, executive president of the Mexican Association of Automotive Dealers (AMDA), echoed these worries.

"We are now in a period of uncertainty, and Mexico's economy, particularly the automotive industry, still faces significant risks," he said.

Mexican President Claudia Sheinbaum reassured on Friday that the temporary closure of Stellantis' plant in Mexico would not lead to job losses in the country.

She also noted that economic minister Marcelo Ebrard had discussions with Stellantis to gather more details on the situation.

Earlier, the president announced that Ebrard would travel to the U.S. next week to discuss the tariffs' impact on automotive and the steel and aluminum industries, which are not covered by the United States-Mexico-Canada Agreement (USMCA).

Although U.S. President Donald Trump initially announced a 25 percent tariff on all imports from Canada and Mexico, he later agreed to suspend tariffs on products covered by the USMCA.

Stellantis halts production in Canada and  Mexico amid U.S. tariffs, raising concerns

Stellantis halts production in Canada and Mexico amid U.S. tariffs, raising concerns

Stellantis halts production in Canada and  Mexico amid U.S. tariffs, raising concerns

Stellantis halts production in Canada and Mexico amid U.S. tariffs, raising concerns

From textiles and tea to home decor and handicrafts, exhibitors from across South Asia and beyond are showcasing their products at the 10th China-South Asia Expo, which opened on Thursday in southwest China's Yunnan Province.

The expo, a major platform for economic and trade exchanges between China and South Asian countries, is bringing together businesses, government officials and investors from across the region. This year, Bangladesh is serving as the Theme Country.

"For this exposition, they (our exhibitors) can introduce their goods to the Chinese market that will open up for future expansion. In the same way, we want to convey this message to the Chinese investors -- Bangladesh is a very mature investment destination at the moment," said Khandaker Abdul Muktadir, Bangladesh minister of commerce, industries, textiles, and jute.

The expo comes amid expanding economic ties between China and South Asia. Official figures show trade between China and South Asian countries exceeded 200 billion U.S. dollars in 2025, up 10.7 percent year on year. And that strong momentum has continued this year, as growing economic links create new opportunities across the region.

"A total of 87,000 artisans are working with us. And many of our products are handmade, like leather bags, like home decor. And we definitely expect we will get attention from the visitors, and we'll get very good feedback," said Mohammad Minhaz Uddin, a Bangladeshi exhibitor.

"This is a very good platform. Here you can find new buyers, and you make good friends, you make good connections," said Orangzaib Khan, a Pakistani exhibitor.

Beyond the country pavilions, the expo also features more than 10 themed exhibition halls covering areas such as advanced manufacturing, green development, modern agriculture and regional cooperation.

One of the highlights is the newly established Trade in Services Pavilion, which showcases new business models, emerging technologies and the latest achievements in trade in services, reflecting China's efforts to expand high-quality opening-up and deepen cooperation with regional partners.

"We are now entering the era of AI and robotics. Yunnan is home to many border ports, especially those connecting with Southeast Asian countries such as Laos, Myanmar and Vietnam. We hope to actively introduce advanced robotics and AI technologies to make customs clearance smarter and more efficient," said Tian Jinyu, a representative of Maxvision Technology.

10th China-South Asia Expo opens amid growing regional trade

10th China-South Asia Expo opens amid growing regional trade

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