General
In Canada’s Auto City, Tariffs Have Already Caused a Shutdown
Hours before the 25 percent tariff on cars made in Canada went into effect, the largest auto plant in Windsor, Ontario, announced it would close for two weeks.
Outside City Hall in Windsor, Ontario, it was apparent on Friday morning that at least one American thing wasn’t being boycotted. Fans dressed in Detroit Tigers clothing were gathering at a bus stop to cross the river to take in the team’s home opener.
Beyond the opening day festivities, however, it was a week of particularly bad news for Windsor, my hometown.
The Stellantis plant in Windsor, Ontario, which makes Chrysler minivans and Dodge muscle cars, is suspending production for two weeks.Credit…Ian Willms for The New York Times
President Trump finally announced a raft of global tariffs on Wednesday, including a new 25 percent tariff on cars assembled outside the United States. Its effect on Windsor was unexpectedly immediate. Hours before the tariff went into effect, Stellantis, the automaker that is the city’s largest employer, told Unifor, the union that represents its workers, that about 3,600 of the union’s members would be laid off for two weeks while the company sorts out its tariff strategy.
[Read: Auto Tariffs Take Effect, Putting Pressure on New Car Prices]
[Read: Canada’s Prime Minister Puts Tariffs on U.S.-Made Cars and Predicts Global Upheaval]
[Read: With Trump’s Tariffs, the Chasm Between Allies and the U.S. Widens]
While industry executives and auto analysts had warned for months that the tariffs Mr. Trump was threatening would lead to plant shutdowns, they also thought that wouldn’t happen for weeks.
