GM to add Sierra pickup assembly in Canada despite US tariff threat

Key facts

• General Motors will assemble the next-generation GMC Sierra heavy-duty truck at its Oshawa, Ontario plant.
• The investment for this assembly line is C$144 million ($104 million).
• GM has also pledged not to immediately sell or close its Ingersoll, Ontario assembly plant.
• A tentative agreement has been reached between GM and the union Unifor, representing 4,600 workers.
• The agreement requires ratification by union members.

General Motors plans to add assembly of its next-generation heavy-duty GMC Sierra pickup truck to its plant in Oshawa, Ontario, as part of a tentative labor agreement with the union Unifor. The company will invest C$144 million ($104 million) in the Oshawa facility and has also committed to not immediately sell or close a second assembly plant in Ingersoll, Ontario. This development offers a significant boost to Canada's automotive sector, which has faced pressure from U.S. tariffs.

The tentative agreement covers 4,600 union members and is awaiting ratification by members over the weekend. Both GM Canada and Unifor declined to comment ahead of the vote. The U.S. has been in discussions with Canada to reduce existing 25% tariffs on Canadian-produced vehicles, but talks stalled over issues including duties on medium- and heavy-duty vehicles. U.S. President Donald Trump has previously stated his intention to raise tariffs on all Canadian cars, trucks, and parts to 50% effective January 1, 2027.