(The Center Square) – President Donald Trump’s tariff announcement earlier this week quickly led to layoffs and production pauses at one of the nation’s Big Three automakers.
Stellantis is temporarily stopping production at two plants in Mexico and Canada, leading to temporary layoffs for about 900 workers in Michigan and Indiana, the Detroit Free Press reported.
The stoppage is scheduled to begin Monday and last for two weeks at a plant in Canada and for the rest of April at a Mexican plant. The Michigan and Indiana plants make parts that support production at the idled facilities.
Last week, Trump announced a 25% tariff on imported automobiles and auto parts, duties that he said would be “permanent.” The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue.
On Wednesday, Trump also announced he will impose a 10% tariff on all countries, taking effect Saturday at 12:01 a.m. EDT. Trump will impose an individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including China, India and Vietnam, among others.
All other countries will continue to be subject to the 10% tariff baseline, according to the White House.
Michigan’s Auto Association warned earlier this week the tariffs would hurt production and increase vehicle prices.
“After months of daily conversations with stakeholders at every level of our automotive industry, MichAuto maintains that our automotive-related tariffs, which are now stacking up on multiple fronts, will increase input costs and hinder operating feasibility for Michigan companies and those across the country,” said Glenn Stevens Jr., MichAuto’s executive director. “Most concerning is the prospect of a significant rise in the price of vehicles for sale – prices that will reduce demand and hurt the automotive industry and its workforce, all of which have an outsized impact on Michigan’s economy.”
