In a stunning turn of events that underscores the shifting landscape of North American trade, Stellantis the parent company of Chrysler, Jeep, Dodge, and Ram has announced plans to move part of its vehicle production from Canada to the United States. The move comes amid escalating trade tensions fueled by former President Donald Trump’s renewed economic policies aimed at bringing manufacturing jobs back to American soil.
On Tuesday, Stellantis declared that it would invest $13 billion in the United States, bringing five new models to the market. The plan calls for the relocation of Jeep Compass production from a facility in Brampton, Ontario, Canada, to Illinois.
According to reports from major Canadian and U.S. outlets, Stellantis is preparing to transition some of its production operations from Ontario to Michigan, citing the U.S. government’s stronger manufacturing incentives and Trump’s aggressive stance on tariffs for imported vehicles. The decision could have far-reaching implications for Canada’s auto sector, which employs tens of thousands of workers and serves as a key pillar of its industrial economy.
Trump, who has long championed domestic manufacturing, celebrated the announcement as a major victory for American workers. In a post on Truth Social, he hailed Stellantis’s move as proof that his trade policies are “bringing jobs and pride back to the U.S. auto industry.” The statement echoed his 2016 campaign promise to make America the global leader in automotive production once again.
On Wednesday, employees at the Stellantis assembly facility in Brampton received a robocall from their employer informing them that the work they had been anticipating would not be returning. As it retooled the plant, the corporation lay off about 3,000 employees and closed the production in 2023.
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But in Canada, the decision has caused indignation. Premier of Ontario Doug Ford harshly denounced Trump’s economic strategies, charging the former president with destroying Canadian employment and going against the spirit of international collaboration. According to reports, the Canadian federal government is looking into legal possibilities, including taking Stellantis to court for violating previous investment agreements linked to government subsidies.
Analysts say the move highlights the growing competitiveness between the two countries in securing electric vehicle (EV) investments. The U.S. has rolled out billions in federal tax credits and infrastructure grants to attract automakers.
While Canada has faced mounting pressure to keep pace. With Stellantis already operating major EV battery plants in both Windsor, Ontario, and Kokomo, Indiana, the latest shift could further tilt production advantages toward the U.S.
For Canadian workers, however, the consequences could be severe. Industry unions have warned that job losses could ripple across supply chains, affecting smaller parts manufacturers and service providers. The Canadian Auto Workers Union has called on Ottawa to negotiate directly with Stellantis to preserve domestic employment.
As the North American auto industry braces for further change, one thing is clear: Trump’s bold strategy has once again reshaped the conversation about where the future of car manufacturing belongs and this time, it seems to be heading firmly back to America.