OTTAWA CUTS TARIFF RELIEF FOR GM AND STELLANTIS AFTER JOB AND INVESTMENT PULLOUTS
The federal government has announced sharp reductions to tariff exemptions for General Motors (GM) and Stellantis, citing the automakers’ recent decisions to scale back production and investment in Canada.
According to senior officials, Ottawa will lower the “remission quota” — the number of U.S.-built vehicles that can enter Canada without facing retaliatory tariffs — for both companies.
Under the new measures, GM’s tariff-free import quota will be reduced by 24 percent, while Stellantis will face a 50 percent cut to its quota.
The move follows a series of downsizing announcements:
- GM recently confirmed it will end production of BrightDrop electric vans at its Ingersoll, Ontario facility.
- Stellantis revealed plans to shift Jeep Compass production from Brampton, Ontario, to Illinois.
Federal officials said the tariff relief program was designed to reward automakers that maintained Canadian jobs and capital investment. Both companies, they added, no longer meet those criteria.
The revised quotas mark a significant tightening of Ottawa’s trade stance as the government seeks to protect domestic manufacturing and ensure companies benefiting from tariff exemptions continue to invest in Canada’s economy.
