Portuguese 
English 
Spanish 
4 min of reading 
0 comments 
The Measure Of The Automaker Affects Thousands Of Workers And Arises In Response To The New 25% Tariffs On Cars Produced Outside The USA
The automaker Stellantis announced the suspension of its operations at two factories, one in Canada and another in Mexico, in response to the new tariffs of 25% on cars produced outside the USA.
The decision was communicated just one day after the government of Trump formalized the new taxes, which directly impact the automotive industry in North America.
Suspension Of Stellantis Factories
The Stellantis plant in Windsor, Ontario, in Canada, will suspend its activities for two weeks, while the unit in Toluca, Mexico, will remain closed until the end of April.
-
A major Asian power makes Brazil its primary investment target, accounting for 10.9% of its global total and billions in investments.
-
The country records its first surplus in six months and hits an all-time export record, with oil and gold sharply rising, while the Middle East crisis triggers inflation in the United States and redraws the map of global energy trade.
-
Spotted on BYD’s configurator, the Atto 8 2026 appears before its official launch for R$ 399,990 and promises to arrive in Brazil in March with 488 hp, seven seats, and up to 111 km of electric range.
-
Coinbase announces mass layoff of 700 employees, cuts 14% of staff amid AI wave and leads the crypto giant with operations in Brazil to a billion-dollar restructuring.
This measure impacts about 4,500 workers at the Canadian factory, who will be temporarily laid off. Meanwhile, more than 2,500 employees at the Mexican plant are expected to report to work normally, but with no production during the suspension period.
In addition, 900 workers at factories in the USA that supply components to the affected units will also be temporarily laid off.
The CEO of Stellantis North America, Antonio Filosa, commented: “We are still assessing the medium and long-term impacts of these tariffs on our operations, but we decided to take some immediate actions, including the temporary suspension of certain factories in Canada and Mexico.”
Impact On Stellantis And Other Automakers’ Vehicle Production
The Windsor plant is responsible for the manufacturing of the Chrysler Pacifica minivan and the new Dodge Charger Daytona electric, in addition to being the largest employer in the city.
The Toluca factory produces models like the Jeep Compass and the newly launched Wagoneer S electric, which are sold both in the USA and in international markets.
It is worth noting that the Compass is also manufactured in Brazil, which should not impact its sales in the country.
However, production of the RAM 2500, which is also assembled in Mexico and sold in Brazil, may face shortages, affecting deliveries to local dealerships.
The new tariffs may cause an increase in car prices, with a study by the consulting firm Bernstein projecting an increase of about 7% in prices.
Consequences Of Trump’s Tariffs
The new tariffs on cars produced outside the USA were announced and postponed on several occasions but finally went into effect on April 2.
President Trump signed an executive order on March 26, establishing a rate of 25% on all vehicles manufactured outside the country, including those from Canada and Mexico.
Trump justifies this measure as a way to “stimulate growth and boost the US automotive industry like never before.”
He claims that this could result in up to US$ 100 billion in new revenue for the country, and that the tax will remain in effect throughout his term.
Repercussions For Workers
The union Unifor, which represents Canadian automotive workers, expressed its concern about the new tariffs, stating that these measures would bring immediate harm to workers in the sector.
The statement emphasizes that cuts began even before the tariffs went into effect, highlighting the interconnectedness of the automotive production chain in North America and that the ones paying the price are the employees.
The Overview Of The Automotive Industry
The automotive industry in North America is highly interconnected, with a complex network of suppliers and manufacturers.
The new tariffs impose significant challenges, not only for Stellantis but for all automakers operating in the region.
Vehicle production is often dependent on parts and components that cross borders, and the imposition of tariffs may lead to increased costs that will inevitably be passed on to consumers.
Automakers are adapting to a constantly changing regulatory environment.
In addition to tariffs, other factors, such as the growing demand for electric vehicles and the transition to more sustainable technologies, are also shaping the future of the industry.
Stellantis, for instance, has been investing in electric and hybrid models, seeking to align with global trends and consumer demands for more eco-friendly options.
Market Response
The market response to Trump’s new tariffs is still developing.
Automakers are analyzing their supply chains and exploring ways to minimize financial impacts.
The possibility of rising vehicle prices may lead consumers to reconsider their purchasing options, especially in a market already affected by chip shortages and other components.
While the tariffs aim to protect the US automotive industry, they may also result in reduced global competitiveness.
Automakers operating outside the USA, especially in Mexico and Canada, may seek alternatives, such as relocating production to countries with lower operational costs or investing in technologies that allow them to mitigate the impacts of tariffs.
Final Considerations
The consequences of Trump’s new tariffs are still uncertain, but the initial impacts are already being observed. The automotive industry faces a critical period of adaptation and reevaluation as automakers attempt to adjust to the new conditions imposed by the government of the USA.
Whether through factory suspensions, price increases, or reconfiguration of supply chains, the coming months will be decisive for the industry and its workers.
SOURCE: MOTOR1/UOL
Be the first to react!