Automotive

QSA's Week in Automotive (#18, 2025)

Canada implements remission order on U.S. auto tariffs; Tribunal review maintains silicon metal duties on China; Tribunal finds no injury from U.S. renewable diesel imports; CFIA calls for vigilance on invasive species; Industry reactions to tariff impacts.

Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for car manufacturers, parts suppliers, car dealers, and others in the automotive industry. Every Monday, we break down the most important updates in this space in under five minutes.

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Start Date: 2025-05-04
End Date: 2025-05-10

Top Headlines

Main Stories

Canada Introduces Remission Framework for U.S. Auto Tariffs

Following the imposition of 25% tariffs on passenger vehicles and trucks by the U.S., Canada enacted reciprocal tariffs effective April 9, 2025, covering U.S. vehicle imports. The United States Surtax Remission Order (Motor Vehicles 2025) establishes a framework that allows Canadian auto producers to import a specified quantity of CUSMA-originating vehicles from the U.S. free of duties, provided production commitments in Canada are maintained. The remission amounts will be subject to periodic review and adjusted according to the level of Canadian-based production. Companies undergoing retooling can retain allowance if production resumes as scheduled; otherwise, remitted duties will become payable. Details on manufacturer allocations remain confidential for competitive reasons.

Sources: Canada Gazette, Part II: www.gazette.gc.ca

Canada Maintains Tariffs on Silicon Metal from China

The Canadian International Trade Tribunal announced the continuation, without amendment, of its order maintaining duties on silicon metal imports from China. The Tribunal concluded that lifting the order would likely result in injury to the domestic industry. The decision covers silicon metal containing between 89% and 99.99% silicon by weight, including those with certain aluminum content, and follows expiry review RR-2024-002 under the Special Import Measures Act. The order applies to all forms and sizes originating in or exported from the People’s Republic of China.

Sources: Gazette, Part I: www.gazette.gc.ca

Trade Tribunal Terminates Renewable Diesel Injury Inquiry Against U.S.

The Canadian International Trade Tribunal ruled that there is no reasonable indication that the dumping or subsidizing of renewable diesel imports from the United States has caused or threatens to cause injury to the Canadian industry. As a result, the Tribunal terminated its preliminary injury inquiry and the associated investigations by the Canada Border Services Agency under the Special Import Measures Act. No further proceedings will take place, and no tariffs or countermeasures will be applied to U.S. renewable diesel imports.

Sources: Announcements: www.canada.ca

Provincial Announcements

Ontario Expands Manufacturing Tax Credit Amid U.S. Tariffs

Ontario announced a $1.3 billion extension of the Ontario Made Manufacturing Investment Tax Credit, raising the rate for Canadian-controlled private corporations from 10% to 15% and expanding eligibility to non-Canadian-controlled corporations.

Sources: Provincial Announcement: news.ontario.ca

Ontario Commits $1 Billion to Skills Development Fund

Ontario’s government allocated an additional $1 billion over three years to its Skills Development Fund, focusing on worker training in sectors affected by tariffs, including manufacturing.