Stellantis halts production at assembly plants in Canada, Mexico after Trump auto tariffs

Stellantis, a multinational auto manufacturer, told employees Thursday it would temporarily pause production at assembly plants in Canada and Mexico amid the onset of President Trump’s tariffs, according to an internal email obtained by The Hill.

“We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” Antonio Filosa, Chief Operating Officer for the Americas wrote.

“Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations. These are actions that we do not take lightly, but they are necessary given the current market dynamics,” he added. 

The COO said the company would work to “quickly adapt” to policy changes during “challenging times.”

Last week, the Trump administration imposed a 25-percent tariff on all imported foreign vehicles and automobile parts, which are effective Thursday.

The new measure came weeks after he placed a 25 percent tariff on specified imports from Canada and Mexico in addition to an identical levy on all aluminum and steel imports.

Despite outcries about a significant uptick in costs for Americans, the president said it would retroactively spur a national manufacturing boom leading to job creation and economic growth.

“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Trump said in an interview with NBC News. 

“I couldn’t care less. I hope they raise their prices, because if they do, people are gonna buy American-made cars. We have plenty.”