Ottawa has expanded the tariff-free import quota for an unnamed automaker after the company increased Canadian production and posted stronger-than-expected sales in 2025.
The change was authorized through an order-in-council dated February 26. The automaker requested a higher ceiling during the July-to-September review period; Ottawa granted it in part because domestic manufacturing levels also rose. The company was not named in the order due to confidential financial concerns.
Industry Minister Mélanie Joly pointed directly to Honda and Toyota. “We will actually support those who invest in us,” she said at a media availability in Ottawa. “So when Honda and Toyota increase their production in Canada, we will make sure that they have greater market access. Period.”
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The two Japanese manufacturers now account for 77% of all cars and light trucks assembled in Canada, following GM’s closure of its CAMI plant in Ingersoll and Stellantis’ production halt at its Brampton facility.
Related: Toyota Starts $1.1 Billion RAV4 Production in Ontario
Canada still levies a 25% tariff on US-made vehicles outside the Canada-US-Mexico Agreement. The Liberals dropped most of their broader retaliatory tariffs against the US in September 2025, but counter-tariffs of 25% on American steel and aluminum remain.
Finance Canada spokesman Benoit Sabourin said the remission program is “unique to the automotive sector” and requires companies to sustain Canadian production and follow through on planned investments.
A broader review of the program launched on February 27 is expected to wrap up by April 13.
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