General Motors (GM) will eliminate one of three shifts at its Oshawa, Ontario, plant, cutting roughly 700 jobs as the automaker adjusts its North American operations in response to President Donald Trump’s 25% tariff on imported vehicles.
The move, announced Thursday, reflects GM’s updated demand forecast and the ongoing impact of U.S. trade policy. The Oshawa facility, which currently builds Chevrolet Silverado pickup trucks for the North American market, will now focus more heavily on producing light- and heavy-duty trucks for Canadian consumers.
Trump’s auto tariffs have forced Detroit automakers with cross-border operations to reassess manufacturing strategies. GM warned it could face $4 billion to $5 billion in tariff-related costs this year and plans to offset the hit by cutting spending and increasing production within the U.S.
In a statement, GM cited “the evolving trade environment” as a factor in scaling back operations at Oshawa. The plant, which had been running three shifts, will operate with two starting later this year.
Moreover, the announcement adds to growing concern in Canada over the economic fallout from U.S. trade actions. Prime Minister Mark Carney is expected to outline new economic policy priorities at a Friday press conference. He has pledged to support domestic auto manufacturing but acknowledged that no guarantees can be made to keep Detroit automakers from pulling operations.
Meanwhile, pressure is building from labor groups. Unifor, the union representing Canadian autoworkers, is calling on Carney’s government to revoke GM’s recently granted tariff-exempt status, arguing that the company is violating its commitments to Canadian production.
GM also recently announced plans to temporarily halt production of its BrightDrop electric delivery vans at another facility in Ingersoll, Ontario—about 130 miles from Detroit—impacting jobs there as well when production resumes at a reduced scale.
