Canada will reduce the number of vehicles that Stellantis and General Motors (GM) can bring into the country without tariffs.

The Canadian government’s move follows the US automotive companies’ decision to scale back manufacturing operations in the country.

In a statement, the Government of Canada called the scale back “unacceptable”, adding that this directly breaches their commitments to the country and Canadian workers.

The measure relates to an auto remission framework introduced on 15 April 2025.

That policy allows Canadian automakers to import a specified number of vehicles from the US without counter-tariffs, contingent on maintaining agreed production levels in Canada.

Remission has also been available to companies that temporarily reduce or pause operations due to retooling, on the condition that production later resumes.

Earlier this week, GM halted production of the BrightDrop electric delivery van at its CAMI Assembly plant in Ingersoll, Ontario.

GM said the market for commercial electric delivery vans “developed much slower than expected”, leaving the facility underused.

According to Unifor, the decision resulted in the loss of more than 1,000 jobs.

A week prior, Stellantis set out plans to shift production of the Jeep Compass from Brampton, Ontario, to Illinois as part of a broader US investment programme.

The company announced a $13bn initiative in the US to launch five new models, add a new four-cylinder engine line, and create more than 5,000 jobs.

Canada’s auto sector employs around 125,000 people directly, roughly 80% of them in Ontario.

The industry accounts for about 8% of the country’s manufacturing GDP and 0.7% of overall GDP.

In 2024, Canadian plants built approximately 1.3 million light-duty vehicles, with about 1.1 million exported to the US.

Canada’s Minister of Finance and National Revenue François-Philippe Champagne said: “We are deeply disappointed with the production changes recently announced by General Motors and Stellantis. These unacceptable decisions are in contravention of their legal obligations to Canada and the Canadians workers, which is why we are reducing their import remission quotas.

“Our government stands firmly with its auto industry and its workers and will not hesitate to take strong action to protect it, and ensure that support goes only to those who invest in Canada's future.”

"Canada curbs tariff-free vehicle quota for Stellantis and GM " was originally created and published by Just Auto, a GlobalData owned brand.

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