Canada Eyes Stronger Auto Remission Framework

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.

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