REPORT: General Motors to Cut Back on Manufacturing at Canadian Plant in Wake of Trade War

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General Motors (GM) reportedly announced plans to reduce production at its truck plant in Oshawa, Ontario, eliminating one shift this fall due to President Donald Trump’s auto import tariffs.

The decision is expected to lead to approximately 750 layoffs, according to the union representing the workers at the plant.

In a statement, GM cited an “evolving trade environment” and declining demand as key factors influencing the decision.

The Oshawa plant, which manufactures Chevrolet Silverados, had previously ceased car production in 2019 but was revitalized two years later to focus on truck assembly.

Ontario Premier Doug Ford expressed concern over the impact of the layoffs, calling the news “extremely tough for the workers in Oshawa and their families.”

He attributed the economic uncertainty and chaos faced by the auto industry to Trump’s tariffs.

Chris Waugh, chairman of the Unifor union, emphasized the importance of maintaining jobs and production commitments made when the plant was reopened.

He stated, “We will not sit idly by as that promise is eroded one shift at a time.”

Trump’s 25% tariff on auto imports has prompted car manufacturers to either relocate production to the U.S. or cut back on operations.

Recently, GM announced increased production of light-duty trucks at its assembly plant in Fort Wayne, Indiana, which is expected to create temporary jobs and offer more overtime for employees.

In a broader context, foreign automakers are also ramping up U.S. investments.

For instance, Mercedes-Benz recently revealed plans to expand its factory in Tuscaloosa, Alabama, further illustrating the ongoing shifts in the automotive industry driven by tariff policies.

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