President Donald Trump’s tariffs—which have been called “a complete fucking joke,” “insane and idiotic,” and “probably the most stupid economic step taken by a president in this generation“—haven’t even gone into effect yet, but economists, Wall Street, and people who value their 401Ks are all freaking out with equal abandon. With the stock market in free-fall and decades-long international trade partnerships in tatters, Trump is promising that his policies will somehow “make America wealthy again.” Financial experts, however, are predicting disaster and, to kick things off, carmaker Stellantis has now announced the layoff of 900 people working at its U.S. warehouses.
The carmaker said it would “pause” production at a number of its car assembly plants located in Canada and Mexico, CNN reports. At the same time, the company says that it will lay off 900 hourly workers in the U.S. who are responsible for making the parts that are sent to those manufacturing plants. For the time being, the layoffs are temporary, with the company claiming the suspension of operations is necessary to adjust to reduced production spurred by Trump’s tariffs. The laid-off workers are employed at five plants scattered throughout Michigan and Indiana. Due to their union contracts, they will be able to maintain their pay for the immediate future.
Additionally, Stellantis has said it will suspend operations at assembly plants in Canada and Mexico, both of which employ thousands of hourly workers.
In an internal memo viewed by CNN, a top executive tied the workforce cuts to Trump’s policies. “These are actions that we do not take lightly, but they are necessary given the current market dynamics,” said Antonio Filosa, Stellantis’ chief operating officer for the Americas. “We understand that the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers, and dealers in the US, Canada, and Mexico, as we work to manage and adapt to these changes.”
Other layoffs were announced Thursday, though they weren’t blamed directly on federal policy. Whirlpool, the washing machine manufacturer, said it would be laying off 651 workers from its facility in Amana, Iowa. The layoffs represent approximately one-third of Whirlpool’s workforce in Amana, the Des Moines Register reports. “This is really about aligning to current market conditions driven by consumer demand, particularly as it relates to some of the appliances (refrigeration) made in Amana,” a statement from the company says.
The disruption to business operations is likely to continue. While the global economy is currently in a state of suspended uncertainty, many people are expecting mass layoffs and price hikes throughout the U.S. It’s unclear what the long-term picture looks like but most economists seem to agree: It doesn’t look good.
