General Motors’ Canadian workforce has ratified a new labor agreement that secures C$1.1 billion ($791 million) in investment for its Canadian plants, including the addition of heavy-duty truck production at an Ontario facility.
The deal, approved on Sunday, follows heightened trade tensions between the U.S. and Canada after President Donald Trump pledged to double U.S. vehicle import duties to 50% by January 1, 2027. Current U.S. tariffs on Canadian vehicles stand at 25%, a level that has already pressured the sector amid stalled bilateral trade negotiations.
The investment underscores GM’s commitment to maintaining production in Canada despite the escalating tariff threat. The Ontario plant, a key node in GM’s North American manufacturing network, will now produce a new heavy-duty truck model as part of the broader C$1.1 billion allocation across Canadian facilities. The agreement was reached after months of negotiations with Canadian auto workers’ unions, reflecting efforts to stabilize operations amid uncertain trade policy.
