By production volume, the world's No. 3 automobile corporations, Stellantis, has decided to move production volume from its Canada plant to the United States to avoid President Trump's high tariff. After U.S. President Donald Trump unveiled his "MASGA (Make American Shipbuilding Great Again)" plan with countries including Korea, this time he appears to be making real his "MACGA (Make American Carmaking Great Again)" vision to revive the U.S. auto industry. Analysts say the U.S. Midwest, once called the "Rust Belt," has a chance to rise again.
According to Reuters and others, Stellantis on the 15th (local time) announced it will invest $13 billion (about 16.8 trillion won) in the United States over the next four years to increase U.S. auto production by 50% and create more than 5,000 jobs. The company, formerly Fiat Chrysler, has 18 brands under its umbrella, including Peugeot, Citroën, Fiat, Chrysler, Jeep and Maserati. Stellantis said at a briefing that the investment is "the largest in 100 years of U.S. history."
In particular, the investment is focused on Illinois, Ohio and Michigan—regions that were once the heart of the U.S. auto industry but have since declined. The biggest beneficiary is the Belvidere plant in Illinois. Stellantis will spend $600 million to restart the plant and, beginning in 2027, produce the popular Jeep Compass and Cherokee in the United States. This is expected to create at least 3,300 new jobs. In addition, it will invest $400 million in the Toledo plant in Ohio to build a new truck starting in 2028. At the Warren plant in Michigan, it will spend $100 million to add production lines for electric vehicles and gasoline sport-utility vehicles (SUVs).
Experts said the decision is a response to President Trump's pledge to impose a high tariff of up to 25% on imported cars. In May, Trump said, "We want to make our cars ourselves. We don't really want Canadian cars," making clear that the goal of the tariff policy is a U.S. manufacturing revival. Stellantis relied on imports made at plants including in Canada for more than 40% of vehicles it sold in the United States in 2024. To reduce the tariff burden, there is no option other than to increase production in the United States.
Major outlets reported that Stellantis' "exit from Canada" signals a huge shift in the North American auto industry landscape. For decades, the United States, Canada and Mexico effectively functioned like a borderless single market. The supply chain was so tightly interwoven that a single part typically crossed borders six or seven times before final assembly. But protectionism driven by the Trump administration has turned this borderless single market into a high, solid barrier. It is a symbolic event showing how Trump-style protectionism is reshaping the entire North American economy. Auto industry analyst Tom Benetis said in a CBC interview, "The new tariff regime is pressuring corporations like Stellantis to rethink their investment and production strategies," adding, "Anyone watching the industrial conditions in the United States would not be surprised by this decision."
Canada, which suddenly lost a major auto production plant, is in shock. More than 3,000 workers at the Brampton plant in Ontario, located near the U.S. border, are on the brink of losing their jobs. The plant began equipment replacement in 2023 for new car production, but halted all work and stopped operations in February right after President Trump threatened tariffs.
The Canadian government warned of legal action, saying Stellantis broke promises made in return for past government support. Canada has a precedent of taking the lead in rescuing Chrysler (the predecessor of Stellantis) in 2009 during the global financial crisis. On this day, Canada Industry Minister Mélanie Joly, in a letter sent to the Stellantis CEO, noted this and pressed, "Just as we saved the company from crisis in 2009, now it is your turn to step up for the Canadian people." Minister Joly said the relocation plan is "unacceptable," warning that "Stellantis can be considered in breach of contract."
Canada's political and labor circles also expressed anger in unison. Unifor leader Lana Payne said, "Canadian auto jobs were sacrificed on Trump's altar." Ontario Premier Doug Ford emphasized, "Stellantis has an obligation to keep its promises to Brampton workers."