Canada caps how many US-made vehicles Stellantis and GM can import tariff-free

Canada has made a decisive cut to import quotas for General Motors and Stellantis, a response to the companies' reduction in local manufacturing. This shift comes after their failure to adhere to commitments set by Canada's auto remission framework. By taking these steps, the government aims to bolster the Canadian auto industry and ensure job security for its workers.

Canada has sharply reduced tariff-free import quotas for General Motors and Stellantis, citing their decisions to scale back manufacturing in the country, the country's Department of Finance said in a statement on Thursday.

GM's annual remission quota is cut by 24.2%, and Stellantis' by 50%, following their failure to meet commitments under Canada's auto remission framework, the statement said.

In April, Canada said it would impose 25% counter-tariffs on all vehicles imported from the United States that are not compliant with the U.S.-Mexico-Canada trade deal.

However, the Canadian finance ministry later said that auto manufacturers will be allowed to import a certain number of U.S.-assembled, free-trade-compliant vehicles if they continue to produce cars locally and complete planned investments.

The government statement, issued by Finance and National Revenue Minister Francois-Philippe Champagne and Industry Minister Melanie Joly, criticized GM for reducing production at its Oshawa and Ingersoll facilities in Ontario, and Stellantis for canceling production plans at its Brampton assembly plant.

"These unacceptable decisions are in contravention of their legal obligations to Canada and Canadian workers," Champagne said, emphasizing the government's resolve to protect the auto sector.

Stellantis announced plans to move its Jeep Compass production from Ontario to the U.S., and General Motors ended BrightDrop van output in Ontario, citing weaker demand.

GM and Stellantis did not immediately respond to Reuters' requests for comment.

The policy shift was first reported by CBC News.
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Source: EconomicTimes
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