The impact of Trump tariffs on commerce with Canada and Mexico have hit home in Toledo. Jeep parent company Stellantis is offering buyouts to employees ranging between $50,000 and $72,000 depending on seniority.
UAW members at various Detroit area Stellantis plants are getting the same incentives to voluntarily leave their jobs. Additional hourly workers who meet age and experience criteria are offered the lump sum payments as an inducement to retire.
However it happens, Stellantis has concluded their corporate turnaround plan cannot fully overcome the impact of increased costs caused by the tariff so the size of the workforce must be reduced to reflect business reality.
Paying people big money to stay home forever signals a longterm loss of business is Stellantis’ expectation. The impact to Toledo will surely be felt for years to come.
Revenue declined nearly 50 percent and profit fell by 70 percent last year for Stellantis so tariff turbulence is financially dangerous for Jeep’s corporate parent. The conclusion that tariffs will add costs to Stellantis vehicles and cut sales makes job loss inevitable.
Donald Trump’s path to the presidency included victories in Ohio and Michigan based largely on a frequently articulated promise to bring manufacturing jobs back to America.
Good jobs with good pay and benefits is the starting point to make America great again and candidate Trump always tied that to manufacturing prowess.
It was only after safely winning election that Trump admitted there would be “a little disturbance” and “short term pain” from his tariff plan. Some of the first casualties from the trade war will be good industrial jobs in Toledo.
While the job losses are real, the Trump goal of new American manufacturing facilities to replace the Canadian and Mexican links in the current supply chain will take years to materialize if it ever does. Just as bad for Toledo and Detroit, there’s no guarantee replacement factories will be anywhere near here.
No one can claim candidate Trump didn’t make his tariff plans clear. Voters in northwest Ohio and Michigan gave their support to the Trump tariffs and can’t reasonably complain about the resulting elimination of auto industry manufacturing jobs.
First Published March 25, 2025, 4:00 a.m.
