Stellantis cuts 900 US jobs after new tariffs

Stellantis, the automaker behind brands like Chrysler, Jeep, Fiat, and Dodge, announced Thursday it is temporarily laying off 900 workers at five US plants and pausing production at one plant each in Mexico and Canada.

The Canadian plant makes Chrysler Pacifica and Dodge Charger Daytona EVs, while the Mexico plant builds Jeep Compass and Jeep Wagoneer S EVs.

The decision follows President Donald Trump’s new tariffs, which impose a 10% baseline duty on all imports and a 25% levy on auto imports.

Shares of Stellantis fell 9.3%; Ford, General Motors, and Tesla stocks also dropped. Nearly half of all cars sold in the US are imported.

United Auto Workers President Shawn Fain criticized the layoffs as “unnecessary.”

Industry experts say automakers are rushing to figure out how to respond to the tariff hikes and how much to charge customers. Interestingly, Ford announced it will offer its employee discount to all buyers.

Meanwhile, the White House defended the tariffs, claiming they will boost US industries and wages in the long run.