Jakarta, CNBC Indonesia - Several automotive giants were forced to close car production plants after United States (US) President Donald Trump announced the imposition of high import tariffs for dozens of countries. The factory closures were also accompanied by mass layoffs.
Stellantis announced Thursday that it would halt production at two assembly plants in Canada and Mexico, a move that will temporarily lay off about 900 U.S. workers at support plants.
The move is seen as the most drastic action yet by an automaker over the new tariffs.
Stellantis' downtime began Monday (April 7, 2025) and is set to last two weeks at the automaker's Windsor Assembly Plant in Ontario, Canada, and throughout April at its Toluca Assembly Plant in Mexico.
Volkswagen, Europe’s largest automaker, plans to add import fees to the selling price of its vehicles shipped to the U.S. in response to Trump’s tariffs. The German auto giant has also reportedly halted all shipments of vehicles made in Mexico to the U.S. by rail.
The move, first reported by trade publication Automotive News, appears to underscore the immediate impact Trump's tariffs will have on the company.
"We communicate with our dealer body about all aspects of the business, and we want to be very transparent about navigating this time of uncertainty," CNBC International quoted on Saturday (5/4/2025).
"We have the best interests of our dealers and customers first, and once we measure the impact on the business, we will share our strategy with our dealers," they added.
As part of a plan designed to shift production to U.S. factories and boost American jobs, the Trump administration on Thursday imposed a 25% tariff on foreign auto imports. The White House also said it intends to impose tariffs on some auto parts by May 3.
The move, separate from Trump's massive new tariffs on major trading partners, has hit the global auto industry hard.
Shares of some of the world's biggest car brands traded sharply lower on Friday, extending steep losses from the previous session.
Auto stocks fell deeper into negative territory shortly after China's finance ministry said Beijing intends to impose 34% tariffs on all goods imported from the U.S. starting April 10.
(mkh/mkh)
