GM union deal would invest C$1.1 bln in Canada auto factories amid US tariff pressure

The investment comes as Canada's auto sector grapples with 25% U.S. tariffs on vehicles, with President Donald Trump pledging to double them to 50% on January 1, 2027. The fate of Canadian auto plants has emerged as a central issue in stalled U.S.-Canada trade negotiations.

U.S. President Donald Trump, who has clashed with Ontario Premier Doug Ford in recent days, has also said he will increase tariffs on all Canadian cars and trucks, automotive parts and steel to 50% starting January 1, 2027.

Autos are a key part of talks between the United States and its northern neighbor to reduce U.S. tariffs on Canadian-produced vehicles. Negotiations ended last week over unresolved issues, such as whether to cut duties on medium- and heavy-duty vehicles that are critical for Canadian factories.

Canada has said it cannot accept a trade deal with the U.S. unless the agreement ensures the survival of a robust Canadian auto assembly and parts industry.