Stellantis, an automotive supplier has “paused its production” in parts of Canada and Mexico. As a result of the newly announced tariffs, 900 hourly workers have been temporarily laid off due to the reduced production in Indiana and Michigan. As Trump’s tariffs broadened to a 10% baseline on all imports, it resultantly caused a 25% rise on all auto imports.

Sending the global auto industry into a frenzy for margins, Stellantis sent a letter to its employees. It said that the company is “continuing to assess the medium and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions.”

These actions thus included the paused productions and temporarily laying off nearly 1,000 US hourly workers across powertrain and stamping facilities and idle production in Canada and Mexico. As per the company’s decision, the Windsor Assembly and Toluca Assembly will remain shut for the month of April hampering the lives of over 4,000 employees.

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As US Senator Chuck Schumer took to X and shared this as a “a horrifying consequence of Trump’s tariffs” as “American workers pay the price” amid the exponential number of employees laid off at once. However, The White House had declined an immediate comment on Stellantis job cuts.

Romaine McKinney III, president of the local union chapter that represents workers at Stellantis’ stamping plant in Warren, Michigan, said the tariff-related layoffs were troubling his members, calling it a “pure devastation”.

Shares of Stellantis closed 9.3% lower in New York on Thursday, April 3 while a sharp decline was also observed in General Motors(GMN), Ford(FN) and Tesla(TSLA).The five facilities affected by the layoff include Stellantis’ Warren Stamping and Sterling Stamping plants as well as the Indiana Transmission Plant, Kokomo Transmission Plant and Kokomo Casting Plant, the company said.

Trump’s long-term promise of bringing the jobs of US workers “back home” seems to be having a deeper short-term impact. Worker unions and conglomerates alike, they worry whether or not the tariffs will be able to fill this gap. As automakers scramble to figure out how to respond to these tariffs, customers too anticipate rising prices.