More than 4,000 American manufacturing workers lost their jobs this week, the latest evidence of mounting economic instability tied to former President Donald Trump’s tariff policies. Congressman Ro Khanna and labor leaders are raising urgent concerns as layoffs sweep across the industrial sector, hitting plants in more than a dozen states and leaving thousands of union workers without employment or clear prospects.
Automaker Stellantis announced Thursday that it would temporarily lay off 900 workers in the United States due to production disruptions at its Canadian and Mexican facilities—disruptions directly linked to recently announced tariffs. The affected employees work at five Midwest plants: the Warren Stamping and Sterling Stamping plants in Michigan, and the Indiana Transmission Plant, Kokomo Transmission Plant, and Kokomo Casting Plant in Indiana.
“These are actions that we do not take lightly, but they are necessary given the current market dynamics,” Stellantis’ Chief Operating Officer for the Americas Antonio Filosa said in a memo to North American employees. “We understand that the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the US, Canada, and Mexico, as we work to manage and adapt to these changes.”
Most of the workers affected by these layoffs will initially retain pay due to protections in their union contracts. However, union officials warn that those protections are limited and could erode if the production shutdowns extend over time. Stellantis’s Windsor, Ontario plant, which employs 4,500 hourly workers, will be closed for two weeks. Its Toluca, Mexico plant will be closed through the end of April, affecting 2,400 workers.
“Stellantis continues to play games with workers’ lives,” United Auto Workers union president Sean Fain said in response. “These layoffs are a completely unnecessary choice that the company is making. It’s more of the same, and everything that’s wrong with our broken trade system. Companies like Stellantis use workers as collateral damage to pay the price for management’s poor decisions, and it’s unacceptable.”
Unifor, the union representing autoworkers in Canada, echoed those concerns. “Unifor warned that U.S. tariffs would hurt autoworkers almost immediately and in this case the layoffs were announced before the auto tariff even came into effect,” said Unifor President Lana Payne. “Trump is about to learn how interconnected the North American production system is the hard way, with autoworkers paying the price for that lesson.”
The Stellantis layoffs are just one example in a wider economic unraveling that unfolded across the U.S. this week. “This week,” wrote Rep. Ro Khanna (D-Calif.) in a social media post Saturday, “19 factories had mass layoffs, 15 closed, and 4,134 factory workers across America lost their jobs. Cleveland-Cliffs laid off 1,200 workers in Michigan and Minnesota as they deal with the impact of Trump’s tariffs on steel and auto imports.”
Khanna, a prominent advocate for reshoring and reindustrialization, has warned repeatedly that U.S. manufacturing remains vulnerable to trade shocks and tariff volatility. He cited a string of layoffs across multiple sectors and states in a recent online thread, painting a grim portrait of an economy in which industrial workers are paying the price for policy missteps.
This week, 19 factories had mass layoffs, 15 closed, and 4,134 factory workers across America lost their jobs. Cleveland-Cliffs laid off 1,200 workers in Michigan and Minnesota as they deal with the impact of Trump’s tariffs on steel and auto imports. https://t.co/d1VCFwRQh4
— Rep. Ro Khanna (@RepRoKhanna) April 5, 2025
At Cleveland-Cliffs, union representatives described the mood as one of deep anxiety and confusion. “Chaos. You know? A lot of questions. You’ve got a lot of people who worked there a long time that are potentially losing their job,” said Bill Wilhelm, a servicing representative and editor with UAW Local 600, speaking to WXYZ-Channel 7 in Detroit.
The UAW also warned that its layoff support fund is limited, and alternative employment opportunities are scarce. “Our first concern will be to look around at all the companies where we have members and see if we can find jobs,” said UAW Local 600 First Vice President Mark DePaoli. “I mean, jobs are going to be the key. We need jobs and currently at this time, the majority of the companies that we work with and represent our members at are not hiring.”
Other companies initiating layoffs this week include poultry distributor Perdue Farms, which cut 433 jobs in Tennessee, and Del Monte Foods, which eliminated 378 positions in California. John Deere laid off 9 employees in Iowa, with prior layoffs already numbering in the thousands. Semiconductor manufacturer Summit Interconnect shut down operations in Santa Ana, California, resulting in 74 job losses.
Mass layoffs also hit smaller manufacturers in Kentucky, Pennsylvania, Maryland, Washington, Texas, and Massachusetts. In total, more than 25 companies laid off workers this week alone, affecting nearly every region of the country.
Economists warn that the tariff-related job losses are only part of the problem. Axios reporter Ben Berkowitz wrote Saturday that “when everything gets more expensive everywhere because of tariffs, that starts a cycle for businesses, too — one that might end with layoffs, bankruptcies, and higher prices for the survivors’ customers.” He added: “The cycle is just starting now, but the pain is immediate.”
Berkowitz pointed to the performance of the Russell 2000 index—a key gauge of small-cap U.S. companies—as a barometer for business health. The index is down nearly 20% this year, reflecting widespread concern about the future of domestic enterprise. “The market is like a real time poll … this is going to impact all businesses in one way or another undoubtedly,” wrote Ken Mahoney of Mahoney Asset Management.
Les Leopold, executive director of the Labor Institute, has long criticized both parties for failing to address systemic causes of mass layoffs, including Wall Street speculation and corporate stock buybacks. While he applauded Khanna’s recent statements, he questioned why more Democrats have not taken stronger action. “What do the progressive Democrats have to say about the tens of thousands of mass layoffs that take place each month? Radio silence,” he told Common Dreams. “It would be useful if they had a policy that addressed Wall Street induced mass layoffs rather than just opposing tariffs, but I wouldn’t bet on that.”
In a separate column, Leopold argued that Democrats need to confront the political implications of these economic disruptions more forcefully. “Democrats should take a page from Trump and put job protection on the top of their agenda. As tariffs bite and cause job destruction, the Democrats should show up and support those laid-off workers.” Instead of simply labeling the tariffs “insane,” Leopold wrote, “Democrats should call them job-killing tariffs. As prices rise, they can blame Trump for that as well.”
“Imagine if federal worker unions and Democratic Party officials showed up at the plant gate of a company that was about to close its doors to finance hefty stock buybacks for its billionaire owners,” he continued. “A show of support for their fellow layoff victims and a unity message aimed at stopping billionaire job destruction would be simple to craft and easy to share. It would be news.”
“Why aren’t the Democrats doing this?” he asked.
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