The Canadian government is responding to Stellantis and General Motors by reducing the number of tariff-free vehicles they can bring in from the United States for sale in Canada. This decision comes after the automakers failed to meet their commitments to Canadian manufacturing and workers, prompting Ottawa to take action.
Stellantis recently announced plans to shift production of the Jeep Compass from Brampton, Ontario, to Illinois, while General Motors confirmed the discontinuation of its BrightDrop electric delivery vans production in Ingersoll, Ontario, due to decreased demand.
In an effort to encourage reinvestment in Canadian production, the government has cut the tariff exemptions previously granted to the automakers. Finance minister François-Philippe Champagne and industry minister Mélanie Joly stated that Stellantis and GM have violated their obligations to Canada, leading to the immediate reduction of tariff-free vehicle imports by 24% for GM and 50% for Stellantis.
The move has been commended by Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, who believes it is necessary to hold companies accountable for their commitments. Conversely, Huw Williams, national spokesperson for the Canadian Automobile Dealers Association, expressed concerns that the government’s action could result in higher vehicle prices for Canadian consumers.
Unifor national president Lana Payne supports the government’s approach, describing it as a “carrot-and-stick” strategy to address the challenges posed by U.S. President Donald Trump’s trade policies, which she views as harmful to Canada’s industrial economy.
Meanwhile, discussions continue with the Trump administration to seek relief from tariffs affecting various sectors, with a focus on steel and aluminum. Prime Minister Mark Carney emphasized the importance of protecting Canadian workers and industries, indicating a willingness to take necessary steps to safeguard national interests.
Despite these developments, Stellantis and GM have yet to provide a response to CBC News’ requests for comments on the matter.
