TORONTO — The industry group behind the Detroit Three automakers says the Canadian government is making a mistake by charging tariffs against some U.S. imports.
The federal government said Thursday that it would be limiting how many vehicles Stellantis and GM can import tariff-free after both companies cut back on their Canadian operations.
Brian Kingston, head of the Canadian Vehicle Manufacturers’ Association, says in a statement that while the group supports the goal of protecting Canada’s auto industry and workers, the tariff move is an “unforced error at the worst possible time.”
In April, Ottawa gave exemptions on retaliatory tariffs to some automakers as long as they maintained Canadian jobs and investments, but in the past two weeks both GM and Stellantis have announced cuts to their planned production that leave thousands of Canadian out of work.
In response, Ottawa is reducing how many vehicles Stellantis can import tariff-free by 50 per cent, and for GM by 24 per cent.
Kingston says that the industry still supports tens of thousands of good jobs and that every effort should be focused on working together to strengthen the industry, rather than the response it’s seeing.
“Combined with legal threats and a costly EV mandate, Canada’s competitiveness as an auto manufacturing jurisdiction is rapidly eroding,” said Kingston.
Finance Minister François-Philippe Champagne said in a statement Thursday that the government was committed to maintaining a strong Canadian automotive industry, but is deeply disappointed in GM and Stellantis going against their obligations.
“Our government stands firmly with its auto industry and its workers and will not hesitate to take strong action to protect it, and ensure that support goes only to those who invest in Canada’s future.”
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This report by The Canadian Press was first published Oct. 24, 2025.
