General Motors Canada says it will reduce production at its Oshawa assembly plant this fall, citing tariffs imposed by U.S. President Donald Trump and falling demand.
“GM’s Oshawa Assembly will return to a two-shift operation in light of forecasted demand and the evolving trade environment,” the company said in a statement Friday morning. “These changes will help support a sustainable manufacturing footprint as GM reorients the Oshawa plant to build more trucks in Canada for Canadian customers.”
The Oshawa assembly plant produces light and heavy versions of the Silverado pickup truck, which is also made in Mexico and the U.S.
Unifor officials slammed the move, which they estimate will cost 700 union workers their jobs at the assembly plant and another 1,500 elsewhere, including at parts manufacturers.
“We will not allow GM to barter Canadian jobs to gain Donald Trump’s favour. Cutting the third shift at Oshawa Assembly is a reckless decision that deals a direct blow to our members and threatens to ripple through the entire auto parts supplier network,” said Unifor national president Lana Payne. “GM needs to reverse this short-sighted move before more damage is done.”
Payne also said the move shows disrespect for Prime Minister Mark Carney’s upcoming discussions on trade with the U.S.
“GM’s move is premature and disrespectful — jumping the gun before Prime Minister Carney and President Trump even begin their talks on a new economic deal,” Payne said.
In his first news conference since Monday’s election, Prime Minister Mark Carney expressed his “deepest sympathy” with the affected workers and their families, and said GM’s decision was a “terrible manifestation” of the effects of Trump’s tariffs on Canada.
“I will remind (you) that it’s not just words,” Carney told reporters in Ottawa. “We are in a crisis.”
He reiterated his commitment to making sure that all revenue from counter-tariffs goes to supporting workers, and said he will make sure companies maintain employment and investments in Canada.
“And if not, there will be consequences for those companies,” Carney said.
Trump slapped a 25 per cent tariff on all cars and light trucks not made in the U.S., while also hitting automakers with 25 per cent duties on aluminum and steel. Starting Saturday, auto parts are also set to be levied a 25 per cent tariff, but with an exemption for parts that comply with the Canada-U.S.-Mexico trade agreement.
Canada has retaliated with a 25 per cent tariff on American-made cars imported to Canada, along with some carveouts for CUSMA-compliant vehicles.
The five companies that assemble cars in Canada will also be allowed to import a certain number of U.S.-assembled vehicles free of the counter-tariffs.
Ontario Premier Doug Ford called the announcement “extremely tough” news for autoworkers in Oshawa.
“These are hardworking people who have helped build Ontario’s auto industry,” Ford said in a post on X, noting GM has reaffirmed its commitment to the Oshawa plant.
Ford said the province would continue working to support a strong future for the facility.
“In the face of economic uncertainty caused by the chaos of President Trump’s tariffs and tariff threats, we will continue to fight every single day to attract new investment, secure good-paying jobs and support workers and their families.”
Ontario NDP leader Marit Stiles also slammed the GM announcement as an attack on Canadian workers.
“Ontario’s autoworkers built General Motors and our province invested heavily in Stellantis. We cannot just ‘wait and see’ while these companies take a page out of Trump’s playbook and throw the future of thousands of workers and their families into chaos,” Stiles said in a written statement. “Workers are counting on us to fight like hell for every auto job.”
In April, Canada’s manufacturing sector suffered its worst month since the height of the global COVID-19 pandemic, according to an index that measures production and new orders.
The GM news comes after two moves by the U.S. this week aimed at helping American automakers deal with the impact of tariffs. Thursday, a border agency said Canadian-made auto parts that comply with the Canada-U.S.-Mexico trade agreement won’t be hit with a 25 per cent tariff.
Tuesday, Trump signed an executive order clarifying that auto tariffs and a 25 per cent tariff on parts won’t be “stacked” on top of already-existing import levies, such as those on steel and aluminum. It also said automakers would be able to apply for a rebate of tariffs paid on some imported automotive parts.
But in the order, and an accompanying proclamation, Trump made it clear he’s still aiming to bring as much automotive production to the U.S. as he can.
“It is necessary and appropriate to modify the system of monetary fees and related measures … to more effectively eliminate the threat imports of automobiles and certain automobile parts pose on the national security of the United States,” Trump said in his proclamation.
With files from Mark Ramzy, Kristin Rushowy and The Canadian Press
