Trump's trade war negatively impacted Windsor's auto industry, and experts warn it could spread throughout North America.

Stellantis is closing its Windsor plant for two weeks starting April 7, impacting about 4,500 workers, with more schedule changes expected.

Union officials said Thursday that a total of 6,000 members have gotten layoff notices so far, including at the assembly plant, and parts manufacturers.

President Trump announces 25% tariffs on all autos imported into the US.

"None of our companies are allowed to go into other countries," Trump says, adding the US industrial base has been "devastated," putting the country's "national security at risk." pic.twitter.com/qdnLNLG68U

— Rebel News (@RebelNewsOnline) April 2, 2025

Stellantis informed Unifor Local 444 president James Stewart of the closure Wednesday, following Trump's tariff announcement. “There are multiple factors at play,” Stewart said.

The company announced the closure and a pause in production at its assembly plants in Mexico and some U.S. parts plants.

“Immediate actions we must take include temporarily pausing production at some of our Canadian and Mexican assembly plants, which will have an impact on several of our U.S. powertrain and stamping facilities that support those operations,” the statement from Stellantis said. 

U.S. reports said the company has laid off 900 people in Michigan and Indiana. 

"We will respond forcefully, nothing is off the table to defend our workers and our country.": Mark Carney reacts to President Trump's imposition of 25% auto tariffs on vehicles and parts made outside the United States. pic.twitter.com/nQ1OxdKrgu

— Rebel News (@RebelNewsOnline) March 27, 2025

Canada responded to U.S. tariffs by announcing a counter-tariff on American vehicles. A 25% tariff on imported cars and light trucks to the U.S. began Thursday.

American-made parts may exempt some cars from tariffs, but details are unclear.

“Stellantis continues to assess the effects of the recently announced U.S. tariffs on imported vehicles and will continue to engage with the U.S. administration on these policy changes,” the company added in its statement.

Thousands more layoffs are expected in the coming days and weeks.

“My guess is that there will be an additional 7,000 to 10,000 people,” said Flavio Volpe, CEO of the Automotive Parts Manufacturers’ Association. “The companies are telling their workers today and tomorrow.”

"Knock it off." Poilievre sends a message to President Trump after signing a 25% tariff on all autos outside of the U.S. The Conservative leader added that Canada needs to be "self-reliant and have new and different markets so that we no longer rely on or depend on what is… pic.twitter.com/tmmSZUWcDQ

— Rebel News (@RebelNewsOnline) March 26, 2025

Liberal leader Mark Carney said he will retaliate in kind, with similar tariffs on American-made cars imported to Canada.

Cars with under 75% North American content will be subject to the full 25% tariff, while CUSMA-compliant cars will only face tariffs on non-Canadian, non-Mexican parts.

One auto executive believes that by vowing to give tariff revenue to companies still producing in Canada, the Liberal leader has found a good balance between retaliation and minimizing harm to the Canadian industry.

Volpe warned that tariffs could quickly halt North American auto production due to supply chain integration. He estimates some components cross the border up to seven times during the manufacturing process.

Trumps new global tariffs, Poilievre and Carney respond, Tamara Lich verdict | Rebel Roundup https://t.co/lY8PJ3wlV6

— Rebel News (@RebelNewsOnline) April 3, 2025

Toyota, Honda, and GM are monitoring the situation in Canada, but have no immediate plans to change their operations there, reported the Toronto Star.

GM Canada’s manufacturing facilities continue to operate normally, but GM increased production of some Chevrolet Silverado models in Fort Wayne, Indiana. That same model is also produced at GM’s Oshawa assembly plant.

Toyota Canada will also maintain production in Canada, according to a spokesperson. It is working with governments towards a solution. “Our vehicles are in high demand, and we will continue to build to plan.”

Honda Canada too is collaborating with North American partners to assess and respond to the effects of the new U.S. tariffs.

Ford didn’t reply to repeated requests for comment by Star.

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