DETROIT (FOX 2) – President Donald Trump’s reciprocal tariffs executive order announcement included a focus on the auto industry, with a 25% tariff being placed on all foreign-made automobiles imported into the U.S.

What they’re saying:

The market is already responding to auto tariffs, and so are carmakers. Stellantis laid off close to 1,000 workers, including here in Michigan. What the company and experts are saying about the move.

In 2024, Stellantis reported a 70% decline in net profit, amounting to about $6 billion, with net revenues also down. High inventory combined with reduced shipment volumes and unfavorable sales. Now add tariffs. It’s a tough mix. 

Some workers believe they are not worried at all. That’s the word from James Benson, a UAW autoworker who has friends and family employed by Stellantis.

“Stellantis’s was one of the slow movers,” said Benson. “They did not want to work with the UAW at first. Anyway, this was not a shock.”

Dig deeper:

The automaker shared an email that went out to employees, shared with FOX 2, that 900 U.S. employees would be temporarily laid off.

Stellantis has been plagued by a sliding stock price and lagging sales. Now forced to pause production at a plant in Canada and a plant in Mexico. The spillover also means temporary layoffs at the Warren and Sterling stamping plants in Michigan.

“What they’ve got to do is get their product line straightened out. They’re working on it. They need more new models, they need better pricing across the board,” worker John McElroy said.

Big picture view:

The company’s leadership cite President Donald Trump’s 25% tariff on imported vehicles as part of the calculus in taking action now, but they also admit there are a lot of unknowns.

Local perspective:

Oakland University economy expert Dr. Michael Greiner and other economists think there are some indicators a recession may be on the horizon. Consumer sentiment is weakening and there has been a great deal of stock market volatility combined with a more than 10% selloff of the S&P 500.

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