BrightDrop electric vans at the General Motors CAMI Assembly Plant in Ingersoll, Ontario. (Brett Gundlock/Bloomberg)
The Canadian government said it will allow automakers to import a number of U.S.-made cars and trucks without tariffs, as long as the companies keep manufacturing vehicles in Canada.
The move will provide some relief to companies including General Motors Co. and Stellantis NV that have assembly plants in Ontario but still bring large quantities of vehicles into Canada from the U.S. Last week, the government of Prime Minister Mark Carney put retaliatory tariffs on vehicles made in the U.S.
The government also said it will provide a reprieve for six months on imports from the U.S. that are used in Canadian manufacturing, processing and food and beverage packaging, as well as for certain items related to public health and national security objectives.
Canada currently has 25% countertariffs on about C$60 billion ($43.3 billion) worth of U.S. products, plus a further set of tariffs on some U.S.-manufactured autos.
The Canadian tariffs hit a wide range of U.S. steel and aluminum products, plus items such as tools, computers, and consumer goods.
The exemptions will provide a break to Canadian businesses that rely on U.S. inputs to support their competitiveness, as well as critical institutions such as hospitals, long-term care facilities and fire departments, according to a news release from Canada’s Finance Department.
