The federal government is firing back at Stellantis and General Motors by limiting the number of tariff-free vehicles the automakers can import from the U.S. to sell in Canada, CBC News has learned.
The two multinational manufacturers will no longer be exempt from paying Canada’s retaliatory tariffs on as many U.S.-assembled vehicles as before, sources said.
The move is expected to put pressure on the companies to reinvest in Canadian production and workers to get this benefit back and avoid a big tariff bill.
"I think Canadians and the industry want the government to be tough on companies that don't own up to those partnerships that in many cases have been worth billions," said Flavio Volpe, president of the Automotive Parts Manufacturers' Association.
"And this is a great move."
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 Illino
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