President Trump's 25% tariffs on imported vehicles have led to job losses and production pauses in the auto industry. Stellantis, formerly Fiat Chrysler Automobiles, announced 900 layoffs in the US and temporary production halts in Canada and Mexico.
While the United Auto Workers (UAW) initially supported the tariffs, hoping to bring jobs back to the US, Stellantis' layoffs contradict these expectations. The UAW president criticized the company's decision, stating the layoffs were unnecessary. Analysts, meanwhile, warn of a potential recession in the auto industry due to the tariffs' impact.
The situation has placed the UAW in a complex position, forced to support Trump's policies on tariffs while potentially disagreeing with other aspects of his administration. Experts note Trump's success in leveraging the union's concerns to gain their support for his protectionist policies.