Canada Slashes Tariff-Free Quotas for Stellantis, GM

The Canadian government is cutting tariff-free remission quotas for Stellantis and General Motors after both companies scaled back production in Ontario, actions Ottawa says violate conditions tied to maintaining Canadian jobs and investment. Ottawa will reduce GM’s quota by about 24% and Stellantis’s by about 50%, meaning more U.S.-assembled vehicles they export to Canada will face duties. The policy change follows April’s retaliatory tariffs on certain U.S. goods and is intended to pressure the companies to reinvest in Canadian production and workers. Government and industry officials have pointed to specific shifts — Stellantis moving Jeep Compass output to Illinois and GM ending BrightDrop van production in Ingersoll — as the basis for the penalties. Industry Minister Mélanie Joly called Stellantis’s moves unacceptable and signaled possible legal action; neither automaker nor some officials immediately provided public comment.