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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

The 2026 Greater Bay Area Science Forum opened Sunday in Guangzhou, the capital of southern China's Guangdong Province, where national government ministries and agencies unveiled 40 measures aimed at establishing the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) as an international hub for science and technology innovation.

Two national key research and development programs under the 15th Five-Year Plan (2026–2030) were launched on the sidelines of the forum. One focuses on advanced biotherapeutic technologies, while the other is designed to support the development of the GBA into an international science and innovation center.

A hub platform for matching and commercializing research outcomes across the GBA also went live during the event. Built to pair scientific breakthroughs with corporate needs, the digital platform seeks to accelerate the commercialization and practical application of research achievements.

Measures unveiled to turn GBA into international sci-tech innovation center

Measures unveiled to turn GBA into international sci-tech innovation center

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