There's a certain irony in approving a big new truck program in Canada while the U.S. president is threatening to slap 50% tariffs on Canadian-made vehicles. But that's exactly what happened this weekend, as Canadian workers at General Motors (GM) voted to accept a new labor deal that locks in production of the next-generation heavy-duty GMC Sierra at the company's Oshawa, Ontario plant.
The agreement, announced by the Canadian union Unifor on Saturday, includes a C$144 million ($103.63 million) investment in the Oshawa facility. GM also committed to keeping its CAMI Assembly plant in Ingersoll, Ontario, running for the duration of the contract. That's on top of a C$691 million ($497.30 million) pledge made back in April to support new V8 engine production in the province. All told, GM's Canadian investment commitments now exceed C$1 billion ($720 million).
Unifor, which represents about 4,600 GM workers in Ontario, confirmed the details. Under the deal, workers get a 3% annual wage increase over three years. GM Canada President Jack Uppal said the agreements "improve wages, benefits, and job security, recognize employees' contributions, and support well-paying automotive jobs in Canada."
The timing is notable. According to Barclays research, Canada accounts for roughly 17% of GM's Chevrolet Silverado pickup production, its best-selling model. That's a significant chunk of output sitting north of the border, and it makes GM particularly exposed to any trade disruption.
President Donald Trump has threatened to raise tariffs on Canadian cars, trucks, auto parts, and steel to 50% starting Jan. 1, 2027. That would hit automakers with heavy Canadian manufacturing footprints, including GM, Ford Motor (F), and Stellantis (STLA). Trump has said companies can avoid the tariffs by moving production to the U.S., while accusing Canada of running a $60 billion trade surplus and restricting American farm imports.
Trump also took credit for the U.S. auto industry's recent profitability, claiming Ford had planned to close a Detroit plant but kept it open after he started leading in polls. He said the facility is now operating 24/7 and is highly profitable, crediting his policies with reviving the sector.
So here's the picture: GM is doubling down on Canadian manufacturing even as the White House threatens to make that manufacturing more expensive. The company clearly sees value in the Oshawa plant and its Canadian workforce, and the union secured a deal that keeps jobs and investment flowing. Whether the tariff threats actually materialize remains to be seen, but for now, the next-gen GMC Sierra will be built in Ontario.
