US Truck Manufacturer Lays Off 300 More Workers in Quebec, Union Calls for Action

A truck exits Paccar Inc., a commercial truck manufacturing plant in Sainte-Therese, Quebec, on Oct. 22, 2025. The Canadian Press/Christinne Muschi

A Quebec union is calling on the provincial government to take action after an American commercial truck manufacturer laid off 300 more workers at its Quebec plant ahead of a 25 percent U.S. tariff that is set to take effect on Nov. 1.

Unifor Quebec, the union representing workers at truck manufacturer PACCAR, says the company has laid off 300 more workers at its Sainte-Thérèse factory in Quebec, which it says is the result of the ongoing tariff war between Canada and the United States.

“For the union, this decision confirms the urgency of acting quickly to preserve jobs and a historic part of Quebec industrial know-how,” Unifor said in French in an Oct. 22 news release, noting it will “do everything we can” to support its members who have been “hit hard” by the announcement.

Unifor Quebec director Daniel Cloutier called the cuts “a wake-up call” as the plant risks losing sales in the United States due to the tariffs on medium- and heavy-duty commercial trucks set to take effect next week.

The factory manufactures Kenworth and Peterbilt trucks and relies heavily on revenue from the United States. Cloutier said a “concerted strategy is immediately needed to help PACCAR weather the storm.” If the Quebec plant loses U.S. sales, he says “we must do everything in our power” to replenish the company’s sales with local customers.

The announcement is the latest in a series of layoffs at the company’s Quebec plant, where roughly 425 workers have already been let go since January.

Protect US Manufacturers

U.S. President Donald Trump signed a proclamation on Oct. 17 that will introduce the 25 percent tariff on imports of medium- and heavy-duty trucks, and he will also implement a 25 percent levy on parts of such trucks entering the United States. The tariff rates are expected to take effect on Nov. 1.

Last month, Trump unveiled a new round of tariffs to protect U.S. large truck manufacturers from “unfair outside competition.”

“Our great large truck company manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” Trump said in a series of Truth Social posts on Sept. 25.

The decision came after an investigation carried out by U.S. Commerce Secretary Howard Lutnick concluded imports of medium- and heavy-duty trucks and truck parts threaten national security.

PACCAR’s Quebec plant is its only manufacturing facility in Canada. The company has several plants in the United States and other countries around the world.

The company’s CEO, Preston Feight, said in an Oct. 21 news release that the company delivered “good revenues and net income” in the third quarter of 2025. He noted the new truck tariffs scheduled to begin Nov. 1 “should bring clarity to the market in the coming months.”

“PACCAR is proud to produce over 90% of its U.S. sold trucks in Texas, Ohio and Washington,” Feight said.

‘Decisive Measures’

Unifor is urging the Quebec government to take action to save jobs, saying the province has “direct leverage” to do so through local purchasing by state-owned companies.

“Time is running out for negotiations between Canada and the United States to produce concrete results, but while awaiting the results of these talks, decisive measures can be put in place now to ensure the future of the plant,” the union said.

“It is up to Quebec to set an example, exercise its leadership, and call on all other levels of government in Canada to do the same,” Cloutier said in an Oct. 22 statement.

Liberal MP Madeleine Chenette commented on the 300 layoffs at PACCAR’s Quebec facility within her riding while speaking to reporters on Oct. 22. She expressed concern for the workers who lost their jobs, as well as their families, and noted the broader impact the announcement has on the region.

Canada exported approximately $5.4 billion worth of heavy trucks to the United States in 2024, while it exported just $44 million to the rest of the world. Michigan, Minnesota, New York, Texas, Illinois, and California were the top destinations for Canadian heavy trucks, which accounted for $2.3 billion of that value.

By comparison, Canada exported a total of $7.4 billion in overall vehicle exports to the United States in 2024.

Andrew Moran and The Canadian Press contributed to this report.