Overview
- An order-in-council dated Feb. 26 approved a higher tariff-free allowance for U.S.-made vehicles after 2025 sales beat forecasts and domestic manufacturing increased.
- The automaker’s identity was withheld in the order for confidential financial reasons.
- Ottawa’s auto remission framework ties tariff-free U.S. import quotas partly to an automaker’s Canadian assembly levels and reviews those quotas quarterly.
- Finance Canada opened a review of the program on Feb. 27 to sharpen investment incentives, with completion expected by April 13.
- Industry Minister Mélanie Joly linked the approach to the federal auto strategy and cited Honda and Toyota as examples of firms rewarded for boosting Canadian production; separate 25% duties remain on non-CUSMA-compliant autos and on U.S. steel and aluminum.