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Consultations on Canada’s Automotive Remission Framework

Current status: Closed

By providing conditional relief from counter tariffs on American-made vehicles, Canada's current automotive remission framework constitutes an important incentive for companies to maintain their manufacturing base in Canada in a challenging trade environment. The consultations invited views on how the framework could be more effectively leveraged to further incentivize domestic production, attract new investment, and enhance the long‑term competitiveness of Canada's automotive sector.

This engagement process gave all interested members of the public the opportunity to provide input on this topic. The consultations ran from February 27, 2026 to April 13, 2026. Thank you to everyone who participated.

Key questions for consideration

These consultations sought feedback on:

  • The potential impacts of a tradeable production credit remission system on Canada's automotive industry, including automakers, auto importers, auto parts suppliers, and autoworkers in Canada.
  • The overall design of the import credit system to ensure an effective balance of supply and demand for import credits to create a robust market.
  • More specific parameters for determining allocation of credits, such as awarding of credits for domestic parts production, new investments in Canada, the use of Canadian content, dependence on unionized labour, and the production of electric vehicles.

What's next?

Next steps will be for the government to take stock of the feedback received and determine whether changes to strengthen the automotive remission framework are warranted. While these formal consultations have now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance at any time.

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2026-04-14