FIRST EDITION
Ontario's auto plants and the trade conflict
Stellantis may sell its idled Brampton plant. Tariffs on cars are charged in both directions.
The story so far.
More than 2,000 Brampton autoworkers have been laid off since Stellantis idled their plant. Its planned Jeep Compass went to Illinois. In October 2025 Ottawa halved Stellantis's quota of US-built vehicles free of Canada's 2025 tariff, citing broken commitments. The US points to such cuts in its case for the August 22 tariffs. Stellantis may sell the plant, and Unifor blames the plan for a bargaining impasse. President Trump has announced a 50 per cent tariff on Canadian cars for 2027.
A little background
What follows covers Ontario's auto plants from February to mid-September 2026. By the end you should be able to tell which tariffs apply at the border and which are only announced. You should also see what Brampton's idled plant is waiting on. Three status words carry that. Announced means a government has said what it will do. Scheduled means a signed order sets a start date. In force means the measure applies at the border. Every light-duty vehicle plant on the federal industry department's 2024 list is in Ontario. The plants sit inside a trade conflict between Canada and the United States, widely called a trade war, that has run since early 2025. A tariff is a tax on imports, paid by the importer. Since April 3, 2025 the US has charged 25 per cent on Canadian-built cars, and on auto parts since May 3. It does so under Section 232, a US trade law that allows tariffs on national-security grounds. The North American trade agreement is called CUSMA in Canada and USMCA in the United States. A car qualifies under it when it meets the agreement's rules of origin on North American content. For a qualifying car, the importer can document its US-made parts to the US Commerce Department. Once that is approved, the 25 per cent applies only to the rest of the car's value, its non-US content. Since April 2025 Canada has charged a 25 per cent tariff on some US-built vehicles. For vehicles that qualify, it charges only on content from outside Canada and Mexico, such as US-made parts. Canada also lets automakers bring in a quota of US-built vehicles free of that tariff if they keep up production in Canada. Prime Minister Mark Carney says the US tariffs are 'unjustified'. The United States says its 2026 tariffs answer Canada's 'discrimination' against American cars, alcohol and dairy.
Where things stand
As ofTariffs run both ways across the Canada-US border. US tariffs on a list of Canadian goods took effect on August 22, after being signed in July. President Trump has announced 50 per cent on Canadian cars from January 2027. Honda's electric-vehicle project is indefinitely suspended. In Brampton, Unifor says a possible plant sale is at the centre of an impasse in contract talks with Stellantis.
- In force, scheduled or announced
- US tariffs of 50 per cent on a list of Canadian goods took effect August 22. Canada's counter-tariffs took effect September 8. US bans on some Canadian goods are scheduled for September 29. The US tariff on Canadian-built cars is 25 per cent, and a 50 per cent rate for January 2027 is announced.
- The EV rule and Honda's project
- Ottawa announced it will repeal the EV sales rule and proposed stricter emissions standards. It set aside up to C$3 billion for auto manufacturing. Honda's project is indefinitely suspended, and Honda says no public money was transferred to it.
- Brampton and the September 20 expiry
- Stellantis signed a memorandum of understanding with Roshel on a possible sale of the idled Brampton plant. Unifor, the union representing Canadian autoworkers, is bargaining with Stellantis. The two sides remain in conciliation, which Unifor says rules out a legal strike when the contract expires on September 20.