First fallout from Donald Trump's stiff tariffs: Stellantis to shut down Canada's Windsor plant for two weeks

One of the first fallout from US president Donald Trump's newly introduced tariffs is being experienced in Canada. The carmaker Stellantis NV said it would shut down its Windsor, Ontario, factory for two weeks due to the tariffs imposed on auto parts, reported The Globe and Mail.

Stellantis Plant in Windsor Shuts Down for Two Weeks

The factory which makes minivans and the Dodge Charger, employing 3,600 hourly workers will cease production from April 7 and has cited the tariffs as the main reason for the closure, according to the report.

US Tariffs Impact Canadian Auto Production

Unifor, the union that represents the plant's employees, posted on its Facebook page that the company announced that the new US tariffs which become effective Thursday, place a 25% charge on all cars, except the portion of Canadian-made autos containing US parts, reported The Globe and Mail. Because approximately 50% of the vehicles manufactured at the Windsor plant use US parts, this new tax has had a profound impact on the plant's ability to maintain production.


The Unifor statement mentioned that, “The company said there are multiple factors at play, with the primary driver behind the final decision being this afternoon’s announcement from U.S. President Donald Trump of the U.S. tariffs,” quoted The Globe and Mail. Unifor also added that more changes to the production schedule are expected, as per the report.

Union Warns of Wider Consequences for the Auto Industry

Unifor also cautioned against the far-reaching effects of the tariffs, similar to comments by other industry experts who anticipate that much of North American auto production will grind to a halt, as per The Globe and Mail.

The Union wrote in the statement, “This has and continues to create uncertainty across the entire auto industry. This is not just affecting our plant—it’s impacting facilities in the U.S. and Mexico as well,” as quoted in the report.

Industry Cannot Bear Double-Digit Tariffs

Head of the Automotive Parts Manufacturers’ Association, Flavio Volpe claimed that the industry’s profit margins of less than 10% cannot bear double-digit tariffs, reported The Globe and Mail.

A few hours before the announcement of the Windsor plant shutdown, Volpe said, “Start the countdown to a shutdown. You can’t make cars without all the parts. It just takes one major parts supplier or major automaker to say, We’re not doing this,” quoted The Globe and Mail.

FAQs

How long will the Windsor plant remain closed?
The Windsor plant will shut down for two weeks starting on April 7, as per the report.

What products are made at the Stellantis' Windsor plant?
The Windsor plant manufactures minivans and the Dodge Charger, reported The Globe and Mail.