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Fear and uncertainty are spreading through Windsor after Stellantis announced a temporary shutdown of its vehicle assembly plant. The shutdown, which affects 4,500 workers, comes as a response to new import tariffs imposed by U.S. President Donald Trump on foreign-made vehicles.

The temporary closure is causing ripples throughout Windsor, Canada’s automotive heartland. As a city that borders Michigan, Windsor is deeply connected to the automotive industries in both countries. For decades, car manufacturers in Canada and the U.S. have collaborated to build popular vehicles such as the Ford F-150.

Tariffs Trigger Widespread Fear Among Auto Workers

The 25% tariff on foreign-produced vehicles, recently enforced by the U.S., has raised alarm among Canadian auto workers. The move is expected to increase the cost of vehicles, with a ripple effect on jobs in Canada’s car industry. While Canada secured a limited exemption, vehicles with over 50% American-made parts will face a reduced tariff of 12.5%.

Christina, a long-time worker at Windsor’s Ford plant, shares the fear that many workers are feeling. She worries her job could be next, similar to the Stellantis shutdown. With four children to support, including one in university, she is particularly concerned about her financial future. “It’s terrifying,” she says. “I don’t want to lose everything, especially with a child in school.”

For many in Windsor, the anxiety reflects a broader economic concern. The region has long relied on a stable automotive industry to fuel local economies and provide jobs for families.

Canada Responds with Tariffs and Trade Measures

In response to the U.S. tariffs, Canada has implemented its own set of trade measures to protect local industries. Prime Minister Mark Carney has announced a matching 25% tariff on U.S.-built cars entering Canada. However, under the North American trade agreement, vehicles built within the continent will only face tariffs on non-Canadian components.

In addition, Canada has decided not to include imported auto parts in its tariffs, aiming to target only the finished vehicles. Carney emphasized that Canada would offer tariff exemptions to automakers that continue to invest in local production.

Political leaders across Canada are presenting various strategies to safeguard the national economy. Conservative leader Pierre Poilievre proposed eliminating federal taxes on Canadian-built cars to encourage domestic sales, while NDP leader Jagmeet Singh introduced the idea of “Victory Bonds” to help fund Canada’s economic resilience during this trade standoff.

North America’s Integrated Car Industry Faces Major Disruption

North America’s car industry is highly integrated, with parts and components often crossing borders multiple times before a vehicle reaches consumers. For instance, a Ford F-150 might have its engine built in Canada, electronics from Mexico, and final assembly in Michigan. The tariffs imposed by the U.S. threaten to disrupt this seamless system, potentially causing delays and increased costs across the supply chain.

Stellantis’ decision to shut down production in Windsor for two weeks, along with the suspension of operations in Toluca, Mexico, for a month, highlights the disruption caused by the tariffs. The company also laid off 900 workers in the U.S. as part of the adjustments.

For Canada, the impact is particularly severe. The country exports 93% of its cars, totaling about 1.6 million vehicles per year, to the United States. In addition, car parts from Canada used in U.S. factories are now subject to the full 25% tariff.

Mahmood Nanji, a former Ontario finance official, warns that the consequences will be felt by consumers. He estimates that a Chevy Silverado could cost an additional $8,000 due to the tariff increase. Nanji also points out that dealers will face challenges moving vehicles, leading to reduced demand on both sides of the border.

A Call for Solutions to the Trade Conflict

As the trade conflict continues, workers like Chad Lawton in Windsor remain hopeful for a resolution. “We hope the situation can be sorted out soon,” he says. “We need Canada and the U.S. to work together to avoid more job losses.”

However, Lawton also stresses that Canada must defend its interests and not give in to what he sees as unfair treatment. “We can’t just roll over,” he says. “Our workers and our economy are at stake.”

The situation in Windsor is a stark reminder of how interconnected North America’s car industry is and how much is at risk due to these tariffs. As trade tensions rise, workers and consumers alike will be watching closely to see how the situation develops.