In the Detroit metropolis, hundreds of GM and Stellantis auto workers have been temporarily fired this year.
The layoff announcement came shortly after the Trump administration’s 25% tariff on all auto imports, partially exempting vehicles made under the U.S.-Mexico-Canada agreement.
President Trump said the rate could increase in Canada. Starting May 3, set the 25% tariff to automatic parts.
Some of the layoffs so far this year have nothing to do with tariffs, but tariffs can lead to long-term problems in the industry, leading to increased costs of imported parts, rising prices for consumers, and the potential for reduced demand, which affects the stability of the overall industry.
While Trump said automatic tariffs would transfer production of automobiles and auto parts back to the U.S., experts warn that this could take years (and maybe even possible).
“Automakers are in a serious dilemma,” said Patrick Anderson, president of the Michigan think tank Economic Group, CNN. “They will have to make difficult decisions about what production to continue and what to make…we hope that implementing these tariffs will affect job opportunities across the United States.”
Last month, GM had about 200 workers on the plant plants that built electric vehicles at its gig plant, and he said in a statement that the plant “will adjust production to align with market dynamics.” The company claims that the layoffs have nothing to do with the tariffs.
The gig factory employs more than 4,500 employees; those who are on leave have not returned to their work dates.
In April, Stellantis also temporarily fired 900 American workers via company-wide emails for two weeks. According to CNN, this affected employees at the Warren stamp and Stirling stamping plants in Michigan, as well as other plants in the country.
In this case, automakers recognize the impact of tariffs on the industry. "As new automotive industry tariffs are in effect, we will need our collective resilience and discipline to work hard," Antonio Filosa said in a company email.
According to the Detroit News, the company said that when production ceased this week on April 7, more than half of employees at Stirling stamps and Indiana plants will return to work on April 22.
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Production at Warren Truck Assembly Plant will end until early May, partly due to “a shortage of internal engines.” This reportedly affected 1,000 workers.
Stellantis' Mack and Jefferson North facilities are also facing declines recently as the transition to refresh the 2026 Grand Cherokee Big Cherokee.
If you are a worker experiencing temporary layoffs and are not sure if and when to get back to work – there are some steps you can take to protect your financial future.
If you are part of a union, contact your union representative so you can understand your rights and how temporary layoffs work, such as if you still receive benefits. You may be eligible for unemployment insurance benefits. You may also be eligible for a leave grant, which can help you pay your bills.
Each state has its own unemployment insurance plan; to qualify, you need to meet certain requirements (such as time always working). Usually, you will get up to 26 weeks of compensation depending on the state.
During the budgeting period of income gap, you may want to prioritize essentials, delay bulk purchases, and maybe even negotiate some of your bills. It helps to have an emergency fund that ideally should pay for three to six months. If you don't have one, you will build a priority after reworking. You can also borrow money from 401(k).
Also consider attending a show to bring in some extra cash and possibly put some cash in an emergency fund. You can also use your time to take online courses, seek certification and retouch your resume.
In the long run, it may be worth considering reattack opportunities to better prepare for an uncertain future.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.