Canada Hit by Trump’s 25% Auto Tariff as Stellantis Shuts Windsor Plant for Two Weeks

By Evans Momodu
Published 16:42 UK GMT

Stellantis will shut its Windsor, Ontario assembly plant for two weeks starting April 7 due to Trump’s 25% tariff on imported vehicles. The Canadian auto industry braces for further disruption.

Canada is already facing the harsh economic consequences of former President Donald Trump's newly imposed 25% tariff on foreign-made vehicles, as one of the nation’s key auto assembly plants announces a temporary shutdown.

Stellantis, the automaker behind major brands such as Chrysler, Jeep, and Ram, has informed its unionised workforce in Windsor, Ontario, that the assembly plant will suspend operations for two weeks, beginning April 7. This decision is a direct response to the U.S. tariff hike that took effect today, targeting all vehicles manufactured outside the United States.

The Windsor facility, which produces the Chrysler Pacifica minivan and the all-electric Dodge Charger Daytona, is one of Canada’s most vital automotive hubs. The company has warned that further changes are expected in the coming weeks, signaling deeper disruptions across the Canadian automotive sector.

Just one day earlier, the head of Canada's Automotive Parts Manufacturers Association (APMA) spoke with Sky News correspondent Dan Whitehead, cautioning that Trump’s policy could lead to a "complete shut down" of the Canadian auto industry. His concerns now appear well-founded as the impact begins to ripple through the supply chain.

“The tariffs are not just a political maneuver—they’re a direct blow to Canadian jobs and production,” he warned.

Trump’s 25% tariff on all imported vehicles came into force today, aiming to push auto manufacturers to relocate production to the United States. However, critics argue that the policy will instead spark cross-border economic strain, trigger job losses, and disrupt long-standing trade relationships between the U.S. and Canada.

Canadian officials and auto industry executives have voiced growing concerns over the ripple effects, especially in regions like Windsor, which heavily rely on the automotive industry for employment and economic stability.

As news of the Windsor plant shutdown spreads, the Canadian auto manufacturing sector is bracing for more turbulence. With Stellantis warning of upcoming changes, more factories, suppliers, and workers could soon feel the heat of Trump’s tariffs.

This development underscores the fragile nature of global trade in the auto industry and the potential consequences of protectionist policies on North American economies.
Source: Sky News
Image: Toronto Star