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Canada cuts tariff relief on some US cars due to Stellantis, GM ending some Canadian production

  • The Canadian government is limiting how many tariff-free U.S.-assembled vehicles Stellantis and General Motors can import to pressure reinvestment in Canadian production and workers.
  • After Stellantis announced moving Jeep Compass production from Brampton, Ontario, to Illinois, April exemptions requiring continued Canadian production and GM ending BrightDrop van output at Ingersoll triggered Ottawa's response.
  • Enforcement relies on the remission rate quota and existing retaliatory tariffs; Ottawa is lowering quotas until firms meet Canadian production and investment promises.
  • Industry Minister Mélanie Joly called Stellantis's move unacceptable and threatened legal action, while Prime Minister Mark Carney and Doug Ford, Ontario Premier, seek new options for the GM plant in Ingersoll, Ontario.
  • Comments from U.S. officials this month show President Donald Trump aims to dominate auto manufacturing, while Canada says tariffs must be handled within broader U.S.-Canada trade negotiations.
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U.S. News broke the news in New York, United States on Thursday, October 23, 2025.
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