Trump Imposes 10% Tariff; Canada Cuts Quotas

President Donald Trump announced an additional 10% tariff on imports from Canada, escalating bilateral trade tensions. In parallel, the Canadian government cut tariff-free remission quotas for Stellantis and General Motors after both companies scaled back production in Ontario, reducing Stellantis’s quota by about 50% and GM’s by roughly 24%. Ottawa said the remission relief was conditional on maintaining Canadian jobs and investment and that the quota cuts will cause more U.S.-assembled vehicles imported into Canada to face duties. Government officials cited specific shifts — Stellantis moving Jeep Compass output to Illinois and GM ending BrightDrop van production in Ingersoll — as the basis for the penalties, and Industry Minister Mélanie Joly criticized the moves and signaled possible legal and financial action. The measures come amid broader U.S.-Canada tariff actions and have raised concerns about risks to plant jobs, supplier networks and automakers’ investment plans.