Canada Tightens Tariff Rules on Stellantis and GM Amid Production Shifts
Canada has halved Stellantis' tariff-free import quota in response to the automaker's decision to relocate Jeep Compass production from Ontario to Illinois. The MOVE follows General Motors' halt of BrightDrop electric van production in Canada, triggering Ottawa's auto remission framework penalties.
Finance Minister Philippe Champagne framed the quota reduction as a necessary consequence for breaching commitments to Canadian manufacturing. "These decisions violate signed agreements with Canadian workers," he stated, emphasizing the government's stance on protecting domestic auto jobs.
Stellantis' $13 billion U.S. investment plan—which includes five new vehicle models and a next-generation engine—will create 5,000 jobs across four American states. The production shift reflects broader North American auto industry realignments toward EV supply chain optimization.
