Trump auto tariffs are here. As Stellantis halts work, what will Canada do?

Automaker Stellantis announced that it is halting production on its Windsor, Ont., manufacturing facility for two weeks, with a notice saying Trump's tariffs were the reason.

A new round of U.S. tariffs hitting Canada’s auto sector is now in effect as President Donald Trump escalates his global trade war that has rattled markets and threatened industries across the world.

At the same time, automaker Stellantis announced that it is halting production on its Windsor, Ont., manufacturing facility for two weeks.

“Please be advised that production for the weeks of April 7, 2025 and April 14, 2025 are cancelled. Production employees must not report to work unless directed by their supervisor,” said a notice from Stellantis to employees, posted to social media by Unifor Local 444.

Stellantis said the primary driver behind the decision is the announcement of tariffs from U.S. President Donald Trump, the union said in a Facebook post.

As of Thursday, a 25 per cent tariff will apply on all imports of foreign-made vehicles, trucks and auto parts going into the United States.

The U.S. has so far imposed 25 per cent tariffs on all Canadian goods, as well as an additional 25 per cent on steel and aluminum imports and a 10 per cent levy on Canadian energy imports.

According to the executive order signed by Trump last week, the auto tariffs will not apply on U.S.-made parts in foreign-made vehicles.

The White House says Trump is taking action to protect the American automobile industry, which it claimed is “vital to national security and has been undermined by excessive imports.”