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Canadian government takes action against two major carmakers

BY Connect Newsroom, Oct 24, 2025 4:16 PM - REPORT AN ERROR

The government has cut GM's tariff-free import quota by 24 percent and Stellantis' quota by 50 percent.

The Canadian government has taken action against two major carmakers, Stellantis and General Motors. The government has reduced the exemptions that these companies had been granted to import tax-free vehicles from the United States.

The decision was taken in response to decisions by Stellantis and General Motors to reduce production in Canada and is aimed at pressuring the companies to invest in Canada and retain jobs. The government has cut GM's tariff-free import quota by 24 percent and Stellantis' quota by 50 percent.

This means that these companies will now have to pay Canadian retaliatory tariffs on a large portion of the vehicles they import from the United States.

The move comes after GM halted production of its BrightDrop electric van in Ingersoll, Ontario, and Stellantis announced it would scrap plans to build its Jeep Compass in Brampton and shift it to the U.S.

Industry Minister Melanie Joly says she gave Stellantis 15 days to provide a full update on its next steps earlier this week.

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