Carmakers Halt Production, Rethink Pricing Amid US Tariffs

Stellantis NV has announced a temporary halt in production at its plants in Canada and Mexico due to newly imposed tariffs by the Trump administration, which includes a 25% tax on imported automobiles and parts. This decision will result in approximately 900 layoffs in the U.S. and around 4,500 workers affected in Canada as the company adjusts to the financial strain of the tariffs. Automakers are experiencing significant stock price declines, with major companies like Ford and General Motors seeing drops of 4.4% and 3.3%, respectively. Industry analysts predict that the tariffs could push the U.S. and global economy towards recession, calling it a considerable tax increase on consumers and businesses. The tariffs are also expected to have a ripple effect on UK manufacturers, prompting calls for urgent trade negotiations to mitigate the impact. The situation underscores the interconnected nature of global automotive production and the challenges posed by escalating trade tensions.