The Canadian government is curbing tariff exemptions for Stellantis and General Motors after both automakers decided to scale back production in Canada, a government official said Thursday.

The companies will no longer receive the full waiver on countertariff duties for vehicles and auto parts, the official said, speaking on condition of anonymity as they were not authorized to discuss the issue publicly.

Stellantis announced earlier this month that it would relocate production of its Jeep Compass from Canada to the United States, while General Motors revealed this week that it would end production of its BrightDrop electric vans in Ontario.

The moves come as U.S. President Donald Trump continues to pressure major American automakers to bring manufacturing back to the United States.

The developments have fueled growing concern in Ontario about the future of Canada’s auto industry, which represents the country’s second-largest export sector. Prime Minister Mark Carney has emphasized that the industry directly employs about 125,000 Canadians and supports nearly 500,000 additional jobs in related fields.