GM To Increase Manufacturing At Certain Plants Due To Tariff
General Motors’ decision to cut a production shift at its Oshawa, Ontario truck plant represents more than just a corporate recalibration — it’s a vivid example of how international policy, trade dynamics, and political muscle are reshaping the North American auto industry in real time.
The company’s announcement, which will result in the loss of approximately 750 jobs, came as a direct response to what it called an “evolving trade environment.” Behind that sterile phrase lies a sharper reality: President Donald Trump’s aggressive 25% tariff on auto imports has prompted major manufacturers to rethink their supply chains and manufacturing footprints. For GM, that means scaling back in Canada and ramping up in the U.S.
The Oshawa facility had already faced a turbulent decade. After halting car production in 2019, it was revived two years later with a promise of new investment and job creation — a revival supported by both the federal and Ontario provincial governments.
The plant’s focus shifted to trucks, specifically Chevrolet Silverados, serving the Canadian market. But now, that rebound is faltering under the weight of shifting trade winds.
Premier Doug Ford didn’t mince words, blaming Trump’s tariffs for creating “economic uncertainty and chaos.” The 25% import tax has not only made it more expensive to manufacture outside the U.S., but it’s also incentivizing automakers to centralize operations domestically. The math is simple: avoid tariffs, save money.
GM’s pivot to boost production at its Fort Wayne, Indiana facility reflects this calculus. That plant, which manufactures light-duty trucks, is set to see increased output, additional temporary jobs, and more overtime — a stark contrast to the layoffs in Oshawa.
And GM isn’t alone. Mercedes-Benz is expanding in Alabama, and Hyundai has announced a staggering $21 billion U.S. investment. The message is clear: the path of least resistance, at least for now, runs through American soil.
President Trump has been quick to champion these shifts as proof that “tariffs very strongly work,” and the data seems to support that claim — at least in terms of bringing jobs stateside. But those gains come at a cost.
For Canada, and especially for the hundreds of Oshawa workers facing unemployment, that cost is steep. It’s not just about lost wages — it’s about broken promises, disrupted communities, and an uncertain future.