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.

Demonstrators march in Berlin to condemn U.S.-Israeli strikes on Iran

Demonstrators took to the streets of Germany's capital on Sunday to voice opposition against military strikes by the United States and Israel on Iran, marking the third such rally in Berlin in recent weeks.

The protest began at Berlin Central Station, with marchers carrying banners and chanting slogans as they made their way through the city's main thoroughfares toward the Brandenburg Gate. The planned route took protesters past key government landmarks, including the Chancellery and the Reichstag building, before concluding at Pariser Platz -- just a few tens of meters away from the U.S. Embassy in Germany.

Organized by several anti-war groups, the demonstration reflected growing public concern in Germany over escalating tensions in the Middle East. Protesters condemned the military action against Iran as both illegal under international law and a serious threat to regional peace and security.

An Iranian protester living in Berlin called the U.S.-Israeli strikes against Iran "completely illegal," while warning of the wider consequences of the war.

"It's a completely illegal war against Iran from the United States and Israel. And we Iranians hope to defeat them back home, because we are not a nation who can be oppressed (by) some countries who think they are the best, who think they are super power on the Earth. They are destabilizing energy for countries on the Earth. I think that's the consequences of the war against Iranian people," he said.

German citizens at the rally echoed this disdain for the conflict, describing the U.S.-Israeli military action as an illegal war of aggression.

"The U.S. and Israel's attack on Iran is an illegal war of aggression. This violates the United Nations Charter and must be stopped immediately. Otherwise, it will go against the rules-based international order established after the victory in World War II in 1945 and will lead the world back to the law of the jungle," said a German protester.

The ongoing conflict began on Feb. 28, Israel and the United States launched joint military strikes on Tehran, the capital city of Iran. Iran responded with waves of missile and drone strikes targeting Israel and U.S. bases and assets in the Middle East.