07:42 AM EDT, 10/24/2025 (MT Newswires) -- General Motors ( GM ) and Stellantis ( STLA ) will see their import quotas of counter-tariff-free vehicles reduced by 24.2% and 50%, respectively, the Canadian government said Thursday.

The decision to reduce import quotas was made after the companies said they will

scale back their manufacturing operations in Canada, "directly breaching their commitments to the country and Canadian workers," the government said in a statement.

In April, Canada imposed tariffs of up to 25% on US-made cars and light trucks in response to President Donald Trump's tariffs on foreign vehicles. Canada implemented an auto remission framework allowing automakers to import counter-tariff free a number of vehicles from the US to sell in Canada on the condition that certain production levels are maintained, according to the statement.

GM had said it will cut production in its Oshawa and Ingersoll facilities while Stellantis ( STLA ) cancelled production plans at its Brampton assembly plant, the government said.

Canada is the largest export market for US-made vehicles, importing about 629,000 units in 2024, according to Commerce Department data cited by Bloomberg on Thursday.

GM and Stellantis ( STLA ) did not immediately respond to requests for comment from MT Newswires.