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The Canadian government is limiting how many vehicles Stellantis and GM can import tariff-free after automakers end some production Canadaa government official said on Thursday.
The official said companies will no longer be eligible for full exemption on Canadian countertariff duties on autos and auto parts. The official spoke on condition of anonymity because they were not authorized to speak publicly about the matter.
Stellantis said earlier this month it was moving planned production of its Jeep Compass from Canada to the U.S., and General Motors announced this week it would stop production of the BrightDrop electric van. Ontario,
chairman donald trump Is urging the three big US automakers to shift production to the US
Fear has spread in Ontario about what will happen to Canada’s auto sector. Auto is Canada’s second largest exporter and Prime Minister mark carney noted that the sector directly employs 125,000 Canadians and approximately 500,000 more are employed in related industries.
In April, the government imposed retaliatory tariffs on some U.S. goods, but gave some automakers exemptions to bring specific numbers of vehicles into the country, known as exemption quotas.
ottawa Access to this tariff-free quota is said to require each company to retain Canadian jobs and investment, and both companies have announced cuts in recent weeks.
Ottawa is reducing rebate quotas for General Motors by 24%, and also by 50% for Stellantis
Tensions between the neighbors and longtime allies have eased slightly in recent months as Carney tries to strike a trade deal with Trump, but the tariffs are having an impact, especially in the aluminum, steel, auto and lumber sectors.