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

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.”

The auto tariffs come a day after Trump unveiled global “reciprocal” tariffs on dozens of countries and territories, announcing a baseline 10 per cent duty. Canada is not included in that list.

Prime Minister Mark Carney has previously called Trump’s auto tariffs a “direct attack” on Canadian workers and has vowed to respond.

As the Liberal leader, Carney had to pause his election campaign for a second time in less than a week Wednesday, to coordinate a response to Trump’s announcement on what the U.S. president dubbed as “Liberation Day.”

Carney met with the Canada-U.S. business council on Wednesday. He is convening the federal cabinet committee on Canada-U.S. relations and also virtually meeting with Canadian premiers Thursday morning.

Carney told reporters in Ottawa Wednesday that he will have more to say on Canada’s response to the current tariffs and additional duties in so-called strategic sectors after those meetings.

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Trump’s trade war that has seen multiple rounds of tariffs on Canadian goods, energy, aluminum and steel has so far dominated the federal election campaign.

All the main federal parties have proposed counter measures to fight back against the U.S. trade actions and repeated threats to make Canada a 51^st U.S. state through “economic force.”

The North American auto sector, which is already reeling from Trump’s metal tariffs that were imposed last month, is concerned about the impact these new tariffs will have on workers and the industry at large.

The Global Automakers of Canada has warned the auto tariffs will drive up costs for consumers and impact workers on both sides of the border.

Lana Payne, national president of Unifor, told Global News in an interview Wednesday that Trump’s tariffs will be “very damaging” for the North American industry, which she said is interlinked between Canada, the U.S. and Mexico.

“Potentially what will occur in the auto industry could be the linchpin of a continent-wide recession,” Payne said.

With a file from Reuters

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