Stellantis is temporarily halting production at its automobile assembly plant in Windsor, Ont., as the company assesses the impact of newly imposed U.S. tariffs on vehicles imported from Canada.

The automaker will also pause operations at its facility in Mexico and lay off 900 workers across six U.S. factories that supply its assembly plants.

The Windsor facility, which employs approximately 3,600 workers, is set to close for two weeks starting April 7.

Stellantis’ plant in Toluca, Mexico, which produces the Jeep Compass, will also shut down for at least the month of April.

The layoffs in the U.S. will take place at plants in Michigan and Indiana that manufacture components for the Windsor and Toluca facilities. The affected locations include Warren Stamping, Sterling Stamping, Indiana Transmission Plant, Kokomo Transmission Plant, and Kokomo Casting Plant.

The temporary closures come in response to a new 25% tariff imposed by the U.S. government on imported vehicles. Canadian-made cars with significant U.S. content are exempt from the tariffs, though most Ontario-manufactured vehicles contain roughly 50 per cent U.S. parts.

The shutdowns are expected to have broader consequences for Ontario’s automotive industry, with suppliers in Canada and the U.S. likely to experience disruptions. Industry experts warn that these tariffs could lead to widespread layoffs and production slowdowns across North America.

In response, the Canadian government announced its own set of retaliatory tariffs, applying a 25% levy on U.S.-made vehicles that do not comply with U.S.-Mexico-Canada Free Trade Agreement provisions. Ontario officials have voiced concerns about the Windsor plant closure, calling for action to mitigate the effects on the local workforce.

While U.S. President Donald Trump’s administration has promoted the tariffs as a measure to boost domestic manufacturing, analysts suggest they may lead to higher vehicle prices, reduced sales, and job losses in the automotive sector.

Stellantis has stated that it will continue monitoring the situation and engaging with policymakers regarding the tariff implications. Unifor has called for increased support for workers affected by the Windsor plant shutdown and layoffs. The Union represents 4,500 workers at the facility.

Adam Jacobs, JLL’s head of Canadian research, has stated that industrial real estate assets, particularly Ontario auto plants, will be hit the hardest by the U.S. tariffs.

Pictured: Stellantis auto assembly plant in Windsor, Ont.

Photo: Unifor

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