The increased tariffs recently introduced by President Trump have led Stellantis NV to conduct temporary workforce reductions that affect 900 employees in five American facilities and trigger assembly plant shutdowns across Canada and Mexico. Stellantis NV recently announced worker layoffs and assembly plant production pauses at five U.S. locations along with Canadian and Mexican sites because of the recent automotive trade tariffs.

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Being "medium- and long-term effects of these tariffs" is what Stellantis' Americas COO, Antonio Filosa, named as the reason for these decisions in a letter to employees. The company has ordered powertrain and stamping facilities shutdowns within the United States accompanied by shutdowns at both the Windsor Assembly in Canada and the Toluca Assembly in Mexico.

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Production at the Windsor plant that manufactures Chrysler Pacifica and Dodge Charger Daytona vehicles will stop for two weeks therefore affecting 4,500 employees. The Jeep Compass and Wagoneer S production at the Toluca facility will stop during April but workers will report for duty to receive pay without performing their manufacturing tasks.

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The announcement triggered sharp reactions. Union representatives from Senator Chuck Schumer voiced their opposition to the "Trump tariffs" as the source of these devastating workforce cuts.

The local union president Romaine McKinney III declared the situation a "pure devastation" which deteriorated workplace morale after past layoffs and buyouts. Stellantis should seek other methods to transform plants rather than dismissing employees according to the president of a local union chapter.

The U.S. plants undergoing reduction in operations include the Warren Stamping and Sterling Stamping facilities of Stellantis and the Indiana Transmission Plant and Kokomo Transmission Plant and Kokomo Casting Plant.

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The White House administration supports these tariffs on the basis that they will eventually create benefits for U.S. industrial sectors and workers. The company's spokeswoman Karoline Leavitt has declared that U.S. workers will receive wage raises along with job creation within national borders.

However, the immediate impact on Stellantis and its workforce underscores the economic challenges posed by the tariffs, raising concerns about potential job losses and production disruptions in the automotive sector.