Trump's 25% Auto Tariffs Spark Stellantis Layoffs, GM Expansion: UAW's Shawn Fain Calls Job Cuts 'Completely Unnecessary'

President Donald Trump‘s 25% tariffs on auto imports have sent shockwaves through the integrated North American automotive supply chain, prompting divergent responses from major manufacturers as United Auto Workers leadership criticizes job cuts.

What Happened: Stellantis NV STLA announced Thursday it will temporarily lay off 900 workers at five U.S. facilities and pause production at assembly plants in Mexico and Canada. The affected U.S. sites include Warren Stamping, Sterling Stamping, Indiana Transmission Plant, Kokomo Transmission Plant, and Kokomo Casting Plant.

“We’re continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions,” Antonio Filosa, Stellantis’ chief operating officer for the Americas, wrote in a letter to employees.

In contrast, General Motors Co. GM plans to increase light-duty truck production at its Fort Wayne, Indiana, assembly plant, according to a company webcast viewed by Reuters. The expansion will add 225-250 jobs at the facility, which manufactures Chevrolet Silverado and GMC Sierra trucks.

UAW President Shawn Fain criticized Stellantis’ decision, calling the layoffs “completely unnecessary” and arguing the company has “the money, the capacity, the product, and the workforce to employ thousands more UAW members.”

See Also: Cliff Asness Slams Tariff Logic: ‘Idiots Bray Like They’ve Scored A Point:’ Warns Recession-Driven Deflation Isn’t A Feature

Why It Matters: Trump’s tariffs, which also include a 10% baseline on all imports, have sent automaker stocks tumbling. Stellantis shares fell 9.41% in New York trading on Thursday, while GM lost 4.34%.

Ford Motor Co. F responded to the tariffs by extending employee pricing to all customers through Jun. 2, a promotion the company described as helping Americans navigate “uncertain times.”

Wedbush Securities analyst Dan Ives called the situation a “tariff torpedo” and “pure chaos” for the industry, estimating potential price increases of $5,000-$10,000 per vehicle, with luxury models seeing hikes up to $15,000.

White House spokeswoman Karoline Leavitt defended the tariffs on NewsNation, saying, “They can expect their wages to go up… There’s not going to be any pain for American-owned companies and American workers because their jobs are going to come back home.”

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.