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Stellantis Shifts Production Amid New U.S. Tariffs, Raising Concerns for Canadian Auto Industry

Stellantis NV is adjusting its North American operations in response to new U.S. tariffs introduced by President Trump, including moving some pickup-truck production from Mexico to Michigan and working with suppliers to increase U.S.-based parts output.

These changes aim to boost domestic content in vehicles and qualify for temporary tariff rebates under the revised trade rules. However, Canadian suppliers and automakers are facing significant challenges, with tariffs still applied to Canadian-assembled vehicles and parts, prompting criticism from industry leaders and unions.

Stellantis has paused production in Ontario, withdrawn its financial outlook, and warned that realigning its supply chain will take time.

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