By Paul Vieira

OTTAWA--Heavy truck maker Paccar, dealing with tepid demand for 18-wheelers, cut its workforce at a Canadian plant, the union representing the company's workers said.

Unifor, which represents automotive workers in Canada, said Paccar is laying off 300 of its employees at a factory in Sainte-Therese, Quebec, and tied the cuts to pending tariffs from the Trump administration on heavy-duty trucks. Paccar laid off about 175 workers at the Quebec factory in July.

"The upcoming tariffs are a brutal blow to an already struggling company," said Unifor president Lana Payne.

A spokesman for Paccar, based in Bellevue, Wash., didn't immediately respond to a request for comment.

Late last week, President Trump said he would impose a 25% tariff on heavy trucks and truck parts, effective Nov. 1. However, trucks and parts from Canada and Mexico that comply with the terms of the U.S.-Mexico-Canada trade treaty, or USMCA, would be exempt from this tariff, U.S. officials said.

Paccar released third-quarter earnings this week, which showed profit and revenue fell on weaker demand for its heavy trucks. The heavy-duty truck market has slumped in recent months as trade tensions and economic uncertainty have slowed freight movement following a postpandemic boom.

Layoffs by Paccar mark the latest setback for Canada's auto sector. In the span of just over a week, Stellantis said it would be shifting production of its Jeep Compass model to Illinois from Ontario and General Motors said it would cease production of its BrightDrop electric-delivery van at a Canadian factory, putting 1,200 jobs at risk.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

October 22, 2025 19:17 ET (23:17 GMT)

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