The federal government announced exemptions to Canada’s countermeasure auto tariffs to help keep manufacturing in the country and prevent OEMs from shifting production elsewhere. The measures are geared towards Canadian businesses and entities affected by the U.S.-Canada tariff dispute.
Minister of Finance François-Philippe Champagne said there would be a performance-based remission framework for automakers to help incentivize them to continue production and investment in Canada. The ones that do will be able to import a certain number of U.S.-assembled, CUSMA-compliant, vehicles into the country —free of the countermeasure tariffs that Canada has imposed.
“The remission granted to these companies is contingent on these automakers continuing to produce vehicles in Canada and on completing planned investments,” said the federal government in its news release. “The number of tariff-free vehicles a company is permitted to import will be reduced if there are reductions in Canadian production or investment.”
Champagne also announced the government’s intention to provide a temporary six-month relief for goods imported from the U.S. that are used in Canadian manufacturing, processing, food and beverage packaging, and other areas. The goal is to give businesses time to adjust their supply chains and prioritize domestic supply sources if these are available.
In a statement, Champagne said they are “giving Canadian companies and entities more time to adjust their supply chains and become less dependent on U.S. suppliers” and that “this will help make our economy stronger and more resilient.”
