The federal government has granted an unnamed automaker permission to import a larger number of vehicles from the United States without paying tariffs after the company exceeded expectations in both vehicle sales and manufacturing activity in Canada. The decision follows a periodic review of Canada’s tariff-remission system, which allows certain automakers to bring in a limited number of U.S.-built vehicles duty-free based partly on the level of automotive assembly they maintain in Canada. Although most retaliatory tariffs on American goods were lifted by the Liberal government in September, Canada continues to impose a 25-per-cent duty on U.S. automobiles that do not comply with the Canada‑United States‑Mexico Agreement. According to a federal order-in-council dated Feb. 26, the automaker requested a higher import quota during a review covering the July-to-September period after stronger-than-expected vehicle sales in 2025. The government approved the increase in part because the company also boosted its domestic production levels. The identity of the automaker was withheld due to confidential financial considerations, though Industry Minister Mélanie Joly referenced Honda and Toyota while discussing the policy in Ottawa, emphasizing that companies expanding manufacturing in Canada would be rewarded with greater market access. Federal officials say the approach aligns with the government’s broader auto strategy introduced last month, which aims to encourage global manufacturers to invest more heavily in Canadian production. Meanwhile, the Department of Finance has begun reviewing the country’s automotive tariff-remission program to identify additional ways to attract investment, with the evaluation expected to conclude by April 13. Outside the automotive sector, Canada continues to maintain 25-per-cent counter-tariffs on steel and aluminum imports from the United States, while officials stress that the special tariff-relief framework is unique to the auto industry and depends on manufacturers sustaining production and fulfilling planned investments in Canada.