Stellantis has announced plans to restart production at its previously closed plant in Belvidere, Illinois. The facility, known for manufacturing vehicles under the Jeep, Ram, Dodge, and Chrysler brands, is set to resume operations amid ongoing debates over tariffs. President Donald Trump and the Wall Street Journal's opinion section have clashed over tariff policies. The disagreement centers on the potential economic impact of proposed tariffs on Canadian and Mexican imports, which could reshape the North American auto industry.
President Trump took to Truth Social to criticize an estimate by the Wall Street Journal, dismissing it with unfounded claims. The Journal's editorial labeled the proposal as "The dumbest trade war in history," arguing that the tariffs would significantly impact U.S. manufacturing. The editorial contended that Michigan, a state heavily reliant on the auto industry, could suffer under these trade policies.
“If the goal is to harm U.S. auto workers and Republican prospects in Michigan, then by all means go ahead, Mr. President,” – Wall Street Journal editorial
According to Trump, the tariffs will benefit Michigan by shifting auto manufacturing there. He emphasized his recent electoral victory in the state as evidence of public support.
“The tariffs will drive massive amounts of auto manufacturing to MICHIGAN, a State which I just easily one (sic) in the Presidential Election. They have already stopped numerous new auto plants from being built in other countries, a GIGANTIC WIN (already!) FOR MICHIGAN, and the United States as a whole.” – Donald Trump
The Journal pointed out that all vehicles assembled in Michigan rely on parts imported from Mexico and Canada. Studies indicate that building a full-size SUV would cost $9,000 more, and a pickup truck would see an $8,000 increase due to tariffs.
General Motors' CFO Paul Jacobson expressed concern about the long-term implications of permanent tariffs. He indicated that such policies might force GM to reconsider its manufacturing strategy in North America.
“If they become permanent, then there’s a whole bunch of different things that you have to think about, in terms of where do you allocate plants, do you move plants, etc.,” – Unspecified Speaker
Despite these warnings, no automaker has yet abandoned plans to construct plants in Canada or Mexico. Notably, Tesla has not advanced its previous intentions to establish a plant in Mexico. Historically, automakers have operated under free-trade agreements between the U.S., Canada, and Mexico, perceiving North America as a single market.
The Biden administration's 2023 labor agreement with the United Auto Workers union already included measures to shift certain production back to the U.S., independent of Trump's tariff threats.