Canada will impose 25% tariffs on non-compliant US vehicle imports but will allow limited tariff-free imports for manufacturers maintaining local production and planned investments.
Canada’s Finance Minister Francois-Philippe Champagne and Industry Minister Melanie Joly criticised General Motors on 23 October 2025 for scaling back production at its Ontario plants in Oshawa and Ingersoll, as well as Stellantis for scrapping production plans at its Brampton facility.
GM’s decision to reduce their production in Oshawa and in Ingersoll facilities, and Stellantis’ decision to cancel its production plans for the Brampton assembly plant goes against their commitments to Canada and Canadian workers. For these reasons, the government is reducing General Motors’ annual remission quota by 24.2%, and is reducing Stellantis’ annual remission quota by 50%.
This decision aligns with the government’s long-standing position: we expect these companies to meet their contractual obligations and respect their commitments towards Canada and their workers.
This follows Canada’s announcement in April 2025 of plans to impose a 25% counter tariff on US vehicle imports that fail to meet the requirements of the US-Mexico-Canada trade agreement.
However, the Canadian finance ministry later clarified that automakers could still import a limited number of compliant US-assembled vehicles without tariffs, provided they maintain local production and follow through on planned investments.
On 15 April 2025, Canada’s government implemented an auto remission framework allowing Canada’s automakers to import a set quantity of vehicles from the US counter-tariff free, provided that specified production levels are maintained.
For automakers that have reduced or paused manufacturing in Canada as a result of facility retooling, remission has also been provided on the condition that production at those facilities resumes.
