On Thursday, the automaker announced it would temporarily lay off 900 workers across five U.S. plants and suspend operations at one facility each in Mexico and Canada. The news hit hard for workers and union leaders, with many fearing the start of a broader economic blowback.
Growing Uncertainty Among Workers
Denny Butler, Vice President of the United Auto Workers Local 685 in Indiana, said uncertainty is rising among Stellantis workers.
“We've got a group of 470-some people out there that are starting to worry,” Butler said. “They don't know if they need to go find another job or not. That's the frustrating part... because it's our job to guide those people and give them an honest opinion on what they need to do—and we can’t.”
The company’s decision followed Trump’s announcement of a new baseline 10% tariff on all imports, targeting nations with the highest trade deficits with the U.S., and building on last week's unexpected 25% auto import duties. The moves sent shockwaves through the global auto sector, prompting immediate corporate reactions.
Company Response and Market Impact
In a letter to employees, Stellantis Americas Chief Operating Officer emphasized that the company is still assessing the medium- and long-term implications of the tariffs, but “decided to take some immediate actions.”
The announcement caused Stellantis shares to plunge 9.3% in New York trading. Other major automakers, including Ford, General Motors, and Tesla, also saw sharp declines in stock value following the tariff news.
Political Reactions
Democratic leaders were quick to criticize the policy’s real-world impact. Senator Chuck Schumer called the Stellantis layoffs a “horrifying consequence of Trump’s tariffs,” warning that “American workers are paying the price.”
The White House declined to comment directly on the layoffs.
A Clash Between Policy and Reality
Trump and his team argue that the tariffs are a strategic move aimed at reviving American manufacturing, promising long-term benefits like increased wages and job growth. But for workers suddenly facing unemployment, that vision feels distant.
“I agree with the intent... bringing jobs back,” Butler added. “But look, they just made the announcement yesterday afternoon, and Stellantis didn’t waste no time announcing 900 people are going to be affected. And I think that’s just the tip of the iceberg.”
As the political and economic debate over tariffs intensifies, workers on the ground are left grappling with immediate uncertainty—unsure whether to wait, hope, or start looking elsewhere.
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