Canada Raises U.S. Vehicle Import Quota for Automaker

Ottawa has granted an unnamed automaker permission to import a larger quota of U.S.-made vehicles without tariffs, rewarding the company's increased sales and production in Canada. The decision, outlined in a federal order-in-council dated February 26, reflects Ottawa's strategy to bolster domestic manufacturing amid ongoing trade rules under the United States-Mexico-Canada Agreement, or USMCA.

The automaker requested the quota increase for the period covering higher-than-expected vehicle sales in Canada during 2025, along with elevated levels of local assembly. Officials approved the adjustment, tying it to the company's commitment to sustain production through at least April of the following year. The exact number of additional tariff-free imports remains undisclosed, and the company's identity is being withheld due to confidential financial considerations.

Under USMCA rules, Canada imposes a 25 percent tariff on U.S.-built vehicles that do not meet the agreement's requirements for regional content and manufacturing. However, automakers receive limited exemptions based on their investments in Canadian facilities. Each company can import a set number of non-compliant vehicles...