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How Trump's new tariffs will affect Stellantis

The US President is talking about 25% tariffs on imports from Canada and Mexico, which will affect Stellantis' production.

La produzione auto di Stellantis in Canada

Photo by: Stellantis

By: Fabio Gemelli

Published by: Brian Potter

Jan 26, 2025 at 3:34am ET

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Within hours of taking office as the 47th President of the United States of America, Donald Trump has already revolutionised the politics of one of the world's most important countries by withdrawing from the Paris climate accords and ending the Green Deal and electric cars.

Trump has gone even further by announcing 25% tariffs on imports into the US of goods from Canada and Mexico, probably from 1 January. This could trigger a new trade war between the United States and its two neighbours to the north and south, with possible reciprocal retaliation and a brutal curb on imports of cars produced in Canada and Mexico.

It should be remembered that one of the major automotive groups likely to suffer the most damage from these new duties is Stellantis, which manufactures nearly 40% of the cars sold in the United States in Canada and Mexico. The risk is that a 25% surcharge on some of Stellantis' American models will put them out of business and lead to the closure of some of the group's plants. Let's take a look at the models and plants at risk.

Stellantis, production in Canada

Let's start with Canada, where Stellantis has its main production site in Windsor (Ontario), where almost 4,200 workers manufacture the Chrysler Pacifica, the Chrysler Voyager/Grand Caravan and the eighth generation of the Dodge Charger, the large STLA sports car which is also offered in an electric version called the Charger Daytona.

Dodge Charger Daytona, one of the Stellantis models produced in Canada

Photo by: Dodge

The Windsor plant, along with the Brampton plant, has benefited from a $2.8 billion investment over the last two and a half years to transform and adapt production lines to new models based on multi-energy platforms with petrol, hybrid and electric engines.

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The Stellantis production line at Windsor (Canada)

Photo by: Stellantis

The Windsor gigafactory, named NextStar Energy Inc. and created by Stellantis in collaboration with LG Energy Solution, is also part of this plan. This major Canadian battery module plant (expected to employ 2,500 people) has already started production, with a planned annual capacity of 49.5 GWh, enough to power 450,000 vehicles.

NextStar Energy, la Gigafactory canadienne de Stellantis

Photo by: Stellantis

The Brampton (Ontario) plant, meanwhile, is in the process of modernising its production lines so that it can start producing the first new-generation Jeep Compasses this year, based on the new STLA Medium platform, which also includes a 100% electric version. Nearly $970 million has been spent to transform the Brampton plant (4,000 workers).

The new Jeep Compass will also be produced in Brampton (Canada)

The new Jeep Compass, which will also be produced in Brampton (Canada)

Photo by: Motor1 Italy

To complete the picture of Stellantis in Canada, we should also mention Etobicoke Casting Plant, the foundry in Etobicoke (Ontario) where 258 workers prepare the aluminium blocks for the petrol engines of Chrysler, Dodge, Jeep and Ram models.

Stellantis, production in Mexico

In Mexico, the Stellantis group has its main production site in Toluca, where 2,676 people work on assembling the current Jeep Compass and the brand new Jeep Wagoneer S and Jeep Recon, both of which are fully electric.

The Toluca production plant

Photo by: Stellantis

Another major Stellantis production site in Mexico is in Saltillo, where the 3.0 twin-turbo in-line six-cylinder engines for the Ram 1500, Jeep Wagoneer L and Jeep Grand Wagoneer L are assembled, as well as the 6.4 V-8 Hemi for the Ram Heavy Duty 2500 and Ram Heavy Duty 3500.

Ram Heavy Duty outside the Saltillo plant (Mexico)

Photo by: Stellantis

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At the same location, the Saltillo South Engine Plant assembles the 3.6 V6 Pentastar engines for the Jeep Grand Cherokee, Jeep Grand Cherokee L, Chrysler Pacifica, Dodge Durango, Chrysler Grand Caravan, Jeep Wrangler, Jeep Wrangler Unlimited and Ram 1500, as well as the 3.6 V6 Pentastar PHEV for the Chrysler Pacifica Hybrid.

A number of Stellantis commercial vehicles are also manufactured in Saltillo, including the Ram Heavy Duty pick-up and the Ram ProMaster, the American version of our Fiat Ducato.

Ram ProMaster made in Saltillo

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