October 23,2025
RED FM News Desk
The federal government is pushing back against Stellantis and General Motors by restricting the number of tariff-free vehicles the two automakers can import from the United States for sale in Canada, CBC News has learned.
According to government sources, Stellantis and GM will lose some of their exemptions from Canada’s retaliatory tariffs on U.S.-made vehicles. The move is intended to pressure both companies to reinvest in Canadian manufacturing and jobs to regain their full tariff-free privileges and avoid significant costs.
Ottawa’s decision follows Stellantis’s announcement that it will shift production of the Jeep Compass from Brampton, Ontario, to Illinois, and GM’s confirmation that it will end production of BrightDrop electric delivery vans at its Ingersoll, Ontario, plant due to declining demand.
In April, the federal government had granted automakers exemptions from Canada’s 25 per cent retaliatory tariffs on the U.S. auto sector—but only on the condition that companies maintain Canadian production and follow through on planned investments.
After determining that Stellantis and GM have not met those conditions, Ottawa is now reducing their remission quotas—the limit on how many vehicles they can import tariff-free. Sources say GM’s quota will drop by 24 per cent, while Stellantis’s will be cut by 50 per cent.
A remission quota allows a company to import a specific number of goods—such as vehicles—without paying tariffs, provided it fulfills its production commitments in Canada.
Prime Minister Mark Carney said Thursday that while GM has pledged to keep paying its workers, that alone is not sufficient.
“We’re not satisfied with that,” Carney said.
Loading ...
