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The
official said the companies will no longer be eligible to get
the full break on Canadian countertariff duties on autos and
auto parts. The official spoke on condition of anonymity as 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 this week announced it will end production of
BrightDrop electric vans in Ontario.
President Donald Trump has been urging the Big 3 American
automakers to move production to the U.S.
Fear has spread in Ontario over what will happen to Canada’s
auto sector. Autos are Canada’s second-largest export and Prime
Minister Mark Carney has noted the sector employs 125,000
Canadians directly and almost another 500,000 in related
industries.
In April, the government imposed retaliatory tariffs on certain
U.S. goods, but carved out exemptions for some automakers to
bring specific numbers of vehicles into the country, known as
remission quota.
Ottawa said accessing this tariff-free quota came with terms
requiring each company to maintain Canadian jobs and investment,
and both companies have announced cuts in recent weeks.
Ottawa is reducing the exemption quota for General Motors by
24%, and is doing the same for Stellantis by 50%
Tensions between the neighbors and longtime allies have eased
slightly in recent months as Carney tries to get a trade deal
with Trump, but tariffs are taking a toll, particularly in the
aluminum, steel, auto and lumber sectors.
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