GM deal with workers would add Sierra pickup assembly to Canadian plant despite US tariff threat

General Motors (GM) plans to assemble a next-generation heavy-duty GMC Sierra pickup truck at a plant in Oshawa, Ontario, as part of a tentative deal with the Unifor union, according to a report from Reuters on August 29. The agreement, which has been reached with 4,600 union members in Ontario, the most populous province in Canada, is still pending members' approval.

GM has pledged not to immediately close a second assembly plant in Ingersoll, Ontario. The deal is expected to boost Canada's auto sector, which has been under pressure from U.S. tariffs. Canada has been engaged in talks with the U.S. to reduce tariffs on Canadian-produced vehicles, currently standing at 25%. However, these negotiations ended last week due to unresolved issues, such as the potential reduction of duties on medium- and heavy-duty vehicles.

Canada has insisted that any trade deal with the U.S. must ensure the survival of a robust Canadian auto assembly and parts industry. U.S. President Donald Trump has threatened to increase tariffs on Canadian cars, trucks, automotive parts, and steel to 50% starting January 1, 2027.