Stellantis laying off 900 workers at US plants after Trump tariffs

Core Points - Stellantis announced temporary layoffs of 900 workers across five U.S. facilities due to the impact of President Trump's tariffs, alongside a pause in production at assembly plants in Mexico and Canada [1][2][6] - The affected U.S. plants are primarily powertrain and stamping facilities that supply parts to the idled factories in Mexico and Canada [2][6] - Stellantis' Windsor Assembly will halt operations for two weeks, while the Toluca Assembly in Mexico will be down for the entire month of April [3][4] Industry Impact - The automotive industry is grappling with a new 25% import tax on vehicles, which took effect recently, significantly higher than the previous base tariff rate of 2.5% [5] - Automakers can deduct the value of U.S. parts from the 25% levy when importing vehicles from Canada or Mexico, indicating a complex adjustment process for the industry [5] Company Response - Antonio Filosa, Stellantis' COO for the Americas, stated that the company is assessing the medium- and long-term effects of the tariffs and has decided to take immediate actions, including the temporary production pauses [6] - The company previously paused work on the next-generation Jeep Compass compact SUV, indicating ongoing adjustments to its production strategy [7] Labor Relations - UAW President Shawn Fain criticized Stellantis for the layoffs, claiming the company has the resources to employ more workers and that the layoffs are an unnecessary choice [8] - The Canadian union Unifor, representing Stellantis workers, did not provide immediate comments regarding the layoffs [8]