OTTAWA — The Canadian government is restricting the number of vehicles that Stellantis and General Motors (GM) can import tariff-free. This decision follows recent cutbacks in their Canadian operations. Federal officials, who spoke on the condition of anonymity before a formal announcement, stated that the new limits on U.S.-assembled vehicles will take effect immediately.

In April, Canada imposed retaliatory tariffs on certain U.S. goods but allowed exemptions for some automakers to import a specific number of vehicles without tariffs, known as remission quotas. Access to these quotas required companies to maintain jobs and investments in Canada. However, both Stellantis and GM have announced job cuts and operational reductions in recent weeks.

Reports indicate that the remission quota for GM will be reduced by 24 percent, while Stellantis will see a 50 percent cut. GM recently announced it would cease production of BrightDrop electric vans in Ingersoll, Ontario. Stellantis plans to shift production of the Jeep Compass from Brampton, Ontario, to Illinois.

Cameron MacKay, Canada’s ambassador to Mexico, criticized U.S. President Donald Trump’s expectations regarding vehicle production. He testified before the Senate foreign-affairs committee, stating, "It’s simply not possible for the United States to make cars all by itself, in the near term." He added that Trump’s vision for North American auto production might be unrealistic.

The Trump administration has expressed a desire to manufacture vehicles with minimal foreign parts. During a meeting with Prime Minister Mark Carney on October 7, Trump remarked, "Americans don’t want to buy cars that are made in Canada," but also stated, "We want Canada to do well, making cars." He mentioned working on a “formula” for Canada’s role in vehicle production but indicated a preference against using Canadian steel or aluminum in U.S. supply chains.

MacKay noted that despite U.S. tariffs on various vehicles and components, American companies still rely on parts sourced from Canada and Mexico. He suggested there could be significant alignment between Canadian and Mexican negotiating positions in the upcoming review of the North American trade agreement.

Ontario Premier Doug Ford expressed confidence in Carney’s negotiations with the U.S., despite his more confrontational stance. Ford has proposed increasing Canada’s retaliation against the U.S. but affirmed his support for Carney, saying, "It might be a little easier for me to sit here, and say what I say, but it’s a lot tougher when someone’s sitting across from Donald Trump and he has a big hammer in his hand."

Carney stated he is collaborating with the U.S. on trade across various sectors while ensuring Canadian workers are compensated when American companies alter their plans. He emphasized the changing landscape of U.S. tariffs in critical industries, particularly in the auto sector.

Conservative Leader Pierre Poilievre criticized Carney for not fulfilling his commitment to secure a deal with Washington by June. He stated, "We needed him to actually keep his promise and defend autoworkers in the negotiations with the Americans," and proposed cutting taxes on Canadian-made cars and ending the electric vehicle mandate.