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Canada Tightens Tariff Relief for GM and Stellantis Amid Production Cuts
The federal government has moved to scale back tariff relief for General Motors (GM) and Stellantis after both automakers announced reductions in their Canadian operations.
Ottawa confirmed that the companies will now face stricter limits on how many U.S.-assembled vehicles they can import tariff-free. The decision reduces GM’s tariff-free quota by roughly 24 percent and Stellantis’ by as much as 50 percent, according to government source.
The tariff relief program, introduced earlier this year as part of Canada’s retaliatory measures against U.S. trade restrictions, allowed automakers to import a set number of vehicles without penalty. However, the exemptions were tied to commitments to maintain Canadian jobs and production. With Stellantis shifting Jeep Compass production to Illinois and GM ending BrightDrop van output in Ingersoll, Ottawa says those commitments were breached.
Industry Minister Mélanie Joly called the move a necessary step to protect Canadian workers and ensure automakers uphold their promises. The government signaled that tariff relief could be restored if the companies reinvest in Canadian manufacturing.
Union leaders have welcomed the decision, arguing that it sends a strong message to multinational automakers that Canadian jobs cannot be sacrificed without consequences.
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