The Financial Post reports in its Saturday edition that GM and Stellantis will be forced to pay tariffs on some U.S. made vehicles they import for sale in Canada, after the companies decided to reduce assembly-line work at factories in Ontario.
A Bloomberg dispatch to the Post reports that Canada put tariffs of as much as 25 per cent on U.S. made cars and light trucks in April in response to President Donald Trump's levies on foreign vehicles. Prime Minister Mark Carney's government, however, also carved out an exemption -- known as "remission" -- for automakers that make vehicles in Canada.
That exemption allowed automakers to continue importing vehicles into Canada without paying tariffs, as long as they kept producing and investing in Canadian factories. Stellantis, however, will now see its quota of tariff-free vehicles slashed by 50 per cent and GM will face a 24-per-cent reduction.
Automakers have been altering their manufacturing plans in response to Mr. Trump's tariffs and changes in demand for electric vehicles.
GM announced last week it is permanently ending electric van production in the town of Ingersoll, Ont., casting doubt over the future of that plant, which does not make any other model.
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