General Motors (GM) will invest 1.1 billion Canadian dollars (791 million USD) in its Canadian facilities, in particular for the production of a new heavy-duty truck at its Ontario plant, against the backdrop of new US tariffs, reports Reuters.
A corresponding investment agreement was reached between the corporation and the Canadian GM Workers Union. According to the agency, the Canadian auto industry is facing tariffs of 25% from the US.
One of the main areas of investment will be the production of the next-generation GMC Sierra pickup truck and a new V8 engine. As part of the deal, Canadian workers will receive a 3% wage increase over 3 years.
US trade negotiator Jamieson Greer said earlier this month that Ottawa had abandoned what Washington had considered a favorable bilateral trade deal. In response, 50% US import tariffs on certain categories of Canadian goods took effect on August 22. Canadian Prime Minister Mark Carney confirmed his decision to suspend trade talks with the US. He noted that Ottawa would impose retaliatory tariffs. Carney also stressed that a “trade war” had begun between the US and Canada. He expressed the opinion that Washington initiated this.
Then, US President Donald Trump announced that the country plans to impose 50% tariffs on Canadian cars, auto parts and steel, starting January 1, 2027. From the point of view of the White House, Canada has been “robbing the US“ for years, taking advantage of special relations and de facto trade preferences. However, the US President warned that the US will no longer tolerate this. He also called Canadian officials clowns and threatened Ottawa with serious consequences for escalating trade and other tensions.