Trump’s trade war nets a major victory over Canadian auto industry

By Zi-Ann Lum | 10/16/2025 12:31 PM EDT

Carmaker Stellantis is shifting thousands of jobs and investing billions in U.S.-side production, punching a hole in Canada’s trade talk strategy.

A Stellantis sign is pictured.

Stellantis announced Tuesday that it plans to shift its Jeep Compass production from Ontario’s Brampton Assembly Plant to the Belvidere Assembly Plant in Illinois. Carlos Osorio/AP

President Donald Trump’s trade war just cost Canada its first plantwide auto industry casualty.

Multinational carmaker Stellantis announced plans Tuesday to pour $13 billion into growing vehicle production in the United States — the “single largest” investment in its history — and shift its Jeep Compass production from Ontario’s Brampton Assembly Plant to the Belvidere Assembly Plant in Illinois, crushing 3,000 Canadian jobs in the process.

The global automaker said its plans will expand its U.S. production by 50 percent and create 5,000 new jobs over four years in Illinois, Ohio, Michigan and Indiana.

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Industry Minister Mélanie Joly sent a letter to Stellantis CEO Antonio Filosa on Wednesday, threatening legal action against the company for potentially reneging on a promise to maintain a “full Canadian footprint” in exchange for accepting “substantial financial support.”

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