Unlock stock picks and a broker-level newsfeed that powers Wall Street.

'Like a direct attack:' Canadian auto town feels heat of tariffs

In This Article:

(Bloomberg) — The Stellantis NV (STLA) assembly plant in Windsor, Ontario, rises like an industrial temple on the city’s outskirts. On a typical day, smoke drifts from its sprawling labyrinth of pipes as workers assemble Chrysler Pacifica minivans and Dodge Chargers. But the building has been eerily quiet since its doors shut last week.

Most Read from Bloomberg

The temporary closure followed US President Donald Trump’s imposition of 25% tariffs on imported vehicles. It is Canada’s largest such plant to shutter since the trade war began, and already a ripple effect is spreading across the city at the heart of the country’s auto industry. As Trump slaps tariffs on dozens of trading partners around the globe, other cities face the same disruption.

Trump’s desire to bring manufacturing back to the US poses an existential threat to Canada’s car sector — and communities like Windsor. The Stellantis plant, built in 1928, is the city’s largest employer, with more than 4,500 unionized workers. Its future now hinges on the outcome of an unpredictable trade feud that can change by the day.

The facility is expected to reopen Monday for at least two weeks. In a statement to Bloomberg, Stellantis declined to discuss its future production plans at the plant, saying the company would continue to work with Trump’s administration and assess the effects of the tariffs.

“The uncertainty of this is a killer,” said Windsor Mayor Drew Dilkens. “The overall fear is that we see widespread closures, because people aren’t buying these vehicles. And that cascades through the system — through the automakers, down to the parts makers, and all the way down to workers at Tim Hortons, where there won’t be as many employees pouring coffee.”

Trump said Monday he’s considering possible temporary exemptions to tariffs on imported vehicles and parts to give auto companies more time to set up US manufacturing. Canada has retaliated with tariffs of its own, imposing counter-levies of as much as 25% on US-made vehicles. But on Tuesday, Ottawa allowed for some exemptions for US automakers that continue building cars in Canada.

On an overcast Monday, Stellantis workers trickled in and out of a union hall near the shuttered plant to meet with labor representatives. Assembly workers have largely relied on unemployment benefits offered through their union since the layoffs took hold.

NYSE - Delayed Quote USD

(STLA)

9.43
-
+(2.17%)
At close: April 17 at 4:00:02 PM EDT

Austin Welzel, 27, said he was planning to buy a home with his girlfriend before the plant’s closure, but has since postponed any major purchase.