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Automaker allowed more tariff-free U.S. imports due to higher Canadian production

Darpan News Desk The Canadian Press, 09 Mar, 2026 12:23 PM

Ottawa is letting an unnamed automaker import a higher quota of U.S.-made vehicles without tariffs because the company is selling and making more cars in Canada than first expected.

While the Liberal government dropped the bulk of its counter-tariffs on the United States in September, Canada still maintains import duties of 25 per cent on U.S. autos that are not compliant with the Canada-U.S.-Mexico agreement on trade.

Ottawa allows automakers to import a certain quota of vehicles made in the United States tariff-free, based in part on their level of automotive assembly in Canada.

An order-in-council decision dated Feb. 26 says an automaker asked for a higher quota level because its sales in 2025 were stronger than expected, and the request was granted in part because the level of domestic manufacturing was higher as well.

The automaker in question was not named in the order due to confidential financial concerns.

A spokesman for Finance Canada says Ottawa is reviewing the auto remission program to find more ways to encourage carmakers to invest in Canadian production.

Picture Courtesy: THE CANADIAN PRESS/Cole Burston

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