Stellantis's Chrysler facility in Windsor, Ont. Earlier this month, Stellantis NV announced plans to produce the Jeep Compass in Illinois instead of Canada.

The federal government is scaling back the number of tariff-free vehicles Stellantis STLA-N and General Motors GM-N can import from the U.S. to put pressure on the automakers after they walked back commitments to invest in Canada.

According to a government source, the number of U.S.-assembled vehicles that Stellantis can sell in Canada tariff-free will be cut by 50 per cent and 24.2 per cent for General Motors.

The Globe and Mail is not identifying the source because they are not authorized to speak publicly on the matter.

The move curtails a key exemption that allowed the automakers to avoid paying a 25-per-cent retaliatory ta

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