"The federal government is firing back at Stellantis and General Motors and cutting the number of tariff-free vehicles the automakers can import from the U.S. to sell in Canada. As CBC News first reported, the two multinational manufacturers will no longer be exempt from paying Canada's retaliatory tariffs on as many U.S.-assembled vehicles as before. The move is an attempt to put pressure on the companies to reinvest in Canadian production and workers to get this benefit back and avoid a big tariff bill."
"In April, the federal government offered auto companies exemptions from Canada's 25 per cent retaliatory tariffs on the American auto sector. But that benefit came with strings attached: The automakers had to continue making vehicles in Canada and complete the investments they'd already planned. If companies broke that condition, the government warned it would reduce how many tariff-free vehicles they could import from the U.S."
"Ottawa is taking action after Stellantis announced its plan to expand in the U.S., including moving its production of the Jeep Compass in Brampton, Ont., to Illinois. General Motors also confirmed Tuesday that it was ending production of its BrightDrop electric delivery vans at a plant in Ingersoll, Ont., due to demand."
The federal government is reducing the number of tariff-free U.S.-assembled vehicles that Stellantis and General Motors can import and sell in Canada. The move responds to both companies scaling back Canadian manufacturing, including Stellantis moving Jeep Compass production from Brampton to Illinois and GM ending BrightDrop van production in Ingersoll. In April, Ottawa granted exemptions from Canada's 25 per cent retaliatory tariffs only if automakers maintained Canadian production and completed planned investments. The government says the companies contravened legal obligations and aims to pressure them to reinvest in Canada or face higher tariff costs.
Read at www.cbc.ca
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