Stellantis announced that it is abandoning plans to reopen its factory in Canada and moving production to the United States. The decision is a blow to a key Canadian industry and reflects the impact of President Trump's tariff policies.
See also: Izera without Geely and money from KPO. We know the name of the Polish electrician's new partner
According to the Associated Press, Stellantis' CEO said the plans are the result of “very fruitful conversations with the Trump administration.” Antonio Filosa described the agreement as the largest investment in the company's 100-year history in the United States.
The decision is part of a four-year, $13 billion investment announced by Stellantis on Tuesday to significantly increase production in the United States.
“I'm tired of giving in. We have to defend ourselves,” said Ontario Premier Doug Ford, quoted by the Associated Press. He added that Canada should respond to Trump's tariffs with its own tough measures if a trade deal cannot be reached.
Canada vs. USA. The dispute over car production intensifies trade relations
According to the Associated Press, Canadian Prime Minister Mark Carney emphasized that Stellantis' decision is a direct consequence of American tariffs. He announced a partnership with the company to create new jobs in the Brampton area.
In turn, federal Industry Minister Mélanie Joly warned that changing production was “unacceptable” and recalled Stellantis' obligations to Canada in exchange for financial support.
See also: Chinese cars a hit in Poland? A record was broken
The mayor of Brampton, where the Stellantis assembly plant is located, expressed concerns that Stellantis' decision could set a precedent for other companies. “If this scare tactic works for Stellantis, I expect it will be replicated for every other automaker that has a presence in Canada,” Patrick Brown said, according to The Associated Press.
Canada, 75% of which exports go to the US, faces the difficult task of trade negotiations with the Trump administration. Prime Minister Carney, who took office amid trade tensions, is seeking to improve relations ahead of a review of the free trade agreement next year.
