Oct 23 (Reuters) - General Motors ( GM ) and Stellantis ( STLA )

will no longer be exempt from paying Canada's

retaliatory tariffs on as many U.S.-assembled vehicles as

before, CBC News reported on Thursday.

The federal government of Canada is limiting the number of

tariff-free vehicles the automakers can import from the U.S. to

sell in the country, according to the report.

In April, Canada said it would impose 25% counter-tariffs on

all vehicles imported from the United States that are not

compliant with the U.S.-Mexico-Canada trade deal.

However, the Canadian finance ministry later said auto

manufacturers will be allowed to import a certain number of

U.S.-assembled, free-trade-compliant vehicles if they continue

to produce vehicles locally and complete planned investments.

The Canadian government now believes that Stellantis ( STLA ) and GM

are no longer meeting the requirement of locally produced

vehicles or investments, so Ottawa is lowering their remission

rate quota until the companies live up to their promises,

according to CBC.

Stellantis ( STLA ) announced plans to move its Jeep Compass

production from Ontario to the U.S., and General Motors ( GM ) ended

BrightDrop van output in Ontario, citing weaker demand.

Canada is reducing GM's annual remission quota by 24% and

Stellantis' ( STLA ) by 50%, the report said.

Reuters could not immediately verify the report. GM,

Stellantis ( STLA ) and the Canadian government did not immediately

respond to requests for comment.