Canadian government reduces import remission quotas for 2 automakers

Move aimed at protecting the car sector following the firms' "unacceptable" decisions.

"Our government stands firmly with its auto industry and its workers."

Those were the words of Minister of Finance and National Revenue François-Philippe Champagne when Canada announced its latest move to "protect" the sector. The government is reducing the annual remission quota of General Motors (GM) by 24.2% and that of Stellantis by 50%.

Explaining the rationale for the adjustments, the Department of Finance stated: "This action follows the automakers' unacceptable decisions to scale back their manufacturing presence in Canada, directly breaching their commitments to the country and Canadian workers."

It was noted that an auto remission framework was rolled out in April 2025, allowing car manufacturers in Canada to import a set quantity from the US counter-tariff free on the condition that they maintain specified production levels.

Remission was also provided to automakers that had reduced or paused manufacturing due to facility retooling, with the goal of getting them to resume production.

"GM's decision to reduce their production in Oshawa and in Ingersoll facilities, and Stellantis' decision to cancel its production plans for the Brampton assembly plant goes against their commitments to Canada and Canadian workers," the Finance Department pointed out.

For Minister of Industry Mélanie Joly, the framework amendments represent the government's commitment to defending the Canadian auto industry and its workforce.

Champagne declared: "We are deeply disappointed with the production changes recently announced by General Motors and Stellantis. These unacceptable decisions are in contravention of their legal obligations to Canada and the Canadians workers, which is why we are reducing their import remission quotas.

"Our government... will not hesitate to take strong action to protect [the auto sector] and ensure that support goes only to those who invest in Canada's future."  
 
The car industry in Canada supports approximately 125,000 direct jobs.