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The Stellantis Windsor Assembly Plant is shown on April 1, 2025 in Windsor, Canada. 

Bill Pugliano | Getty Images

DETROIT — Stellantis is pausing production at two assembly plants in Canada and Mexico as the company attempts to navigate President Donald Trump’s new round of 25% automotive tariffs, the company confirmed Thursday.

The actions are the swiftest and most drastic by an automaker regarding the new tariffs, which took effect Thursday and are imposed on all vehicles imported to the U.S., including from Canada and Mexico.

The downtime starts Monday and is set for two weeks at the automaker’s Windsor Assembly Plant in Ontario, Canada, and the entire month of April at its Toluca Assembly Plant in Mexico.

As a result of the pause in production, about 900 U.S.-represented employees at supporting plants will be temporarily laid off in addition to about 4,500 hourly workers at the Canadian plant, according to a company spokeswoman. Workers at the plant in Mexico will still report to the facility but not produce vehicles due to their contract terms, the spokeswoman said.

In an email to employees Thursday, Stellantis North American chief Antonio Filosa said the plant downtime is tied to the tariffs, as the company reviews its options.

“We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” Filosa said. “Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations.”

The Canadian plant produces the Chrysler Pacifica minivan and the recently released Dodge Charger Daytona EV. The Mexico plant produces the Jeep Compass SUV and Jeep Wagoneer S EV.

Filosa said the “current environment creates uncertainty” but assured employees that the company, which continues to search for a new CEO, is “very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico.”

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Brands and advertisers are seeking flexible terms as they face uncertainty about how President Donald Trump’s new tariffs will affect their businesses.

The push for more lenient agreements, in which companies could pivot budgets quickly or shift their focus to different types of marketing as they react to the duties, has been the focus of conversations between media companies and advertisers in recent weeks, according to people close to the discussions.

President Donald Trump announced he would put minimum 10% tariffs on all imports into the U.S., with far steeper duties on dozens of countries including China and Vietnam. The scarcity of specifics in recent weeks, and sometimes contrasting messages coming from the White House, have fueled conversations about flexibility between chief marketing officers and media executives, the people said.

“In this period of uncertainty, we’re seeing a significant shift toward more flexible, performance-based advertising models that allow brands to adjust spending quickly if conditions change,” said Jonathan Gudai, CEO of Adomni, an artificial intelligence-powered programmatic video-everywhere advertising platform. Buying ads programmatically, or through digital platforms, has taken up an increasingly large part of ad spending, and using AI tools are now often part of the process.

Unsteadiness in the economy often mean companies pull back on spending for advertising and marketing. The potential hit to the ad market underscores the ripple effect of tariffs on companies that won’t directly contend with heightened costs on products.

Tariffs aren’t the only factor causing advertisers to rethink their budgets, said Kate Scott-Dawkins, global president of business intelligence of GroupM, WPP’s media investment group.

“We were pretty bullish in our December forecast on [ad spending] growth for the U.S. I think we’ll probably end up curbing that in the June forecast, based on the confluence of impacts,” said Scott-Dawkins. “From the rising inflation plus layoffs and unemployment plus the impact of tariffs. I think it’ll be all those things together that lead to a reduction in our expectations for the year.”

GroupM forecast spending in the U.S. ad market to grow 7% in 2025, after totaling $379 billion in ad revenue in 2024, excluding political advertising, according to a recent report.

For media companies, the uncertainty also comes soon after they contended with tightened ad budgets during the height of the pandemic.

In some regards, advertising has stabilized for many media companies since the pandemic — especially for streaming platforms and those with live sports rights. But traditional TV networks still face lower advertising revenue as consumers shift away from the standard bundle of cable channels, and digital platforms and streaming gobble up a larger share of ad budgets.

Some advertising categories such as autos haven’t rebounded, however, and companies are unsure what tariffs will mean for spending, the people said. Conversations with chief marketing officers at automakers have been frequent, they added. Trump has announced 25% tariffs on cars and some auto parts not made in the U.S.

The tariffs also come weeks before Upfront presentations, when media companies make their annual pitch to advertisers.

“Everything I hear about Upfronts and the state of overall trading in the ad world is that it’s cautious,” said Jonathan Miller, CEO of Integrated Media, which specializes in digital media investments. “There’s much more demands for flexibility, and while it’s not recessionary, there’s a slight holding back…meaning a couple of percentage points of overall growth. Enough that is felt.”

Gudai of Adomni added that traditional TV will be one of the areas most vulnerable to ad budget cuts, but brands will also have to broaden their focus when it comes to competing for customers who could face higher prices on goods.

“Tariffs potentially create a dual impact — increased costs that may squeeze advertising budgets, but also greater need for targeted advertising as brands compete on factors beyond price,” Gudai said.

While media executives are open to offering flexibility, they’ve also been reminding brands that advertising during tough economic times can build brand awareness and help businesses long term, the people said.

Some brands are better served not cutting back on ad spending, too, especially if they don’t have brick-and-mortar stores or ways outside of marketing to get in front of potential customers. Scott-Dawkins said for some companies it’s still worth spending on TV ad spots since it’s still considered the most effective way to reach consumers.

“When every dollar is under scrutiny, brands have to do more than just sell—they have to connect. Purpose-driven marketing isn’t a ‘nice to have’ anymore; it’s how brands earn trust and build lasting relationships,” said Andre Banks, founder and CEO of NewWorld, a marketing and strategy consultancy. “In uncertain times, consumers gravitate toward companies that stand for something real. Advertisers who recognize this will be the ones who don’t just survive the downturn but come out stronger on the other side.”

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Boeing CEO Outlines Plan to Address Safety Concerns

Boeing CEO Kelly Ortberg testified before the Senate Commerce, Science, and Transportation Committee on Wednesday, outlining the company’s progress on improving its manufacturing and safety standards. The hearing comes after a January 2024 mid-air emergency involving a new 737 MAX, which left Boeing’s factory without key bolts installed.

Ortberg faced questions from lawmakers about how the company will ensure that it doesn’t repeat past accidents or manufacturing defects. Senator Ted Cruz, the committee’s chairman, invited Boeing managers and factory workers to report to him their opinions on the company’s turnaround plan.

Boeing’s Commitment to Safety

Ortberg acknowledged that Boeing still has more to do, but emphasized the company’s commitment to safety. "Boeing has made serious missteps in recent years — and it is unacceptable. In response, we have made sweeping changes to the people, processes, and overall structure of our company," he said. "While there is still work ahead of us, these profound changes are underpinned by the deep commitment from all of us to the safety of our products and services."

Improvements Across Manufacturing Lines

Ortberg and other Boeing executives have outlined improvements across the manufacturer’s production lines in recent months, including a contract worth more than $20 billion to build the United States’ next generation fighter jet. However, lawmakers and regulators have maintained heightened scrutiny on the company, a top U.S. exporter.

Federal Aviation Administration Oversight

The Federal Aviation Administration (FAA) capped Boeing’s production of its 737 Max planes at 38 a month following the January 2024 door plug blowout. The agency plans to keep that limit in place, though Boeing is producing below that level. Acting FAA Administrator Chris Rocheleau said at a Senate hearing last week that the agency’s oversight of the company "extends to ongoing monitoring of Boeing’s manufacturing practices, maintenance procedures, and software updates."

Conclusion

Boeing’s commitment to addressing safety concerns is a critical step in rebuilding trust with lawmakers, regulators, and the public. While the company still faces challenges, its progress on improving manufacturing and safety standards is an important step forward.

Frequently Asked Questions

Q: What is Boeing’s plan to address safety concerns?
A: Boeing CEO Kelly Ortberg outlined the company’s plan to improve manufacturing and safety standards, including sweeping changes to the company’s people, processes, and overall structure.

Q: What is the Federal Aviation Administration’s role in overseeing Boeing?
A: The FAA is responsible for monitoring Boeing’s manufacturing practices, maintenance procedures, and software updates, and has capped the company’s production of its 737 Max planes at 38 a month.

Q: What is Boeing’s production rate of 737 Max planes expected to be in 2025?
A: Boeing CEO Kelly Ortberg said the company could produce up to 38 737 Max planes a month this year, but would not push the production line if it’s not stable.