As tariffs loom, GM keeps Canada's engines running

General Motors (GM) has announced a tentative deal with Unifor, a key union in Ontario, to invest C$1.1 billion in the country's auto sector, which is struggling due to 25% U.S. tariffs on vehicles. The investment, which includes C$144 million to add a next-generation heavy-duty GMC Sierra truck to a plant in Oshawa, was reached on Saturday and must be approved by the workers via a vote on Saturday and Sunday.

This agreement comes as the U.S. threatens to double its tariffs to 50% by 2027. The C$1.1 billion investment also includes a C$691 million commitment to support production of new V8 engines in Ontario. The tentative deal is significant as it addresses concerns about the survival of Canadian auto assembly and parts industries, which are crucial for the ongoing U.S.-Canada trade negotiations.