Government launches consultations to strengthen Canada’s automotive remission framework

From: Department of Finance Canada

News release

February 27, 2026 – Ottawa, Ontario - Department of Finance Canada

The Honourable François-Philippe Champagne, Minister of Finance and National Revenue, today launched consultations on potential ways to strengthen Canada’s automotive remission framework by further incentivizing companies to produce and invest in Canada, ensuring Canada remains a global powerhouse for automotive manufacturing.

The changes considered could help to better align trade policy with Canada's industrial and workforce objectives. By protecting Canadian workers and communities, these measures will strengthen supply chains and solidify Canada’s positioning as a destination of choice for automotive investment in a rapidly evolving global industry.

These consultations are part of the new strategy to transform Canada’s auto industry announced by the Prime Minister on February 5, 2026. This strategy incentivizes the production of made-in-Canada vehicles, harnesses the country’s world-class capabilities in artificial intelligence and technology expertise to build the cars of the future, and positions Canada to become a global leader in electric vehicle (EV) production.

Vehicle assemblers, parts producers, importers, workers’ associations, unions, and other interested parties are invited to submit their feedback on potential changes to Canada’s automotive tariff remission framework for surtaxes applicable on passenger vehicles made in the United States (U.S.) by April 13, 2026. 

Quotes

“Canada’s auto sector is a pillar of our economy, and our government will do what is necessary to protect and maintain its competitiveness and the well-paying jobs it sustains. That's why we are launching consultations to strengthen our automotive remission framework and sharpen our tools to drive production and secure long-term investment to build the next generation of vehicles, right here in Canada.”

- The Honourable François-Philippe Champagne, Minister of Finance and National Revenue

“Canada’s auto sector is at a pivotal moment, and we’re acting decisively to secure its future. Strengthening our automotive remission framework is about making sure the cars of the future are built here, by Canadian workers. As we move forward with our new auto strategy, we’re inviting industry and workers to help shape a framework that reflects our ambitions and secure Canada’s leadership in a rapidly changing global economy.”

- The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

Quick facts

  • Canada’s auto sector supports over 500,000 workers, contributes over $16 billion annually to Canada’s GDP, and is one of the country’s largest export industries. In 2025, Canada produced over 1.2 million passenger vehicles.

  • With over 90% of Canadian-made vehicles and 60% of Canadian-made parts exported to the United States, U.S. automotive tariffs are threatening Canada’s automotive manufacturing industry.

  • The government maintains counter-tariffs on imports of passenger vehicles made in  the U.S. to ensure a level playing field for Canadian automotive manufacturers in the domestic market.

  • Since April 2025, Canadian-made vehicles have faced a 25% U.S. tariff on non-U.S. content (the value of U.S. content in CUSMA-compliant vehicles is exempt).

  • Under the current auto remission framework, companies that produce in Canada are able to import U.S.-made vehicles tariff-free, up to a quota, provided they maintain production levels and follow through on planned investments in Canada.

Associated links

Contacts

Media may contact:

John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
john.fragos@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

Stay Connected

Page details

2026-02-27