The federal government is limiting how many vehicles Stellantis and GM can import tariff-free after both companies cut back on their Canadian operations, government officials say.

Federal officials, who were not authorized to speak publicly until an announcement is finalized this evening, say Canada is limiting how many U.S.-assembled vehicles can be imported without facing retaliatory tariffs.

In April, the government imposed retaliatory tariffs on certain U.S. goods, but carved out exemptions for some automakers to bring specific numbers of vehicles into the country, known as remission quota.

Ottawa says accessing this tariff-free quota came with terms requiring each company to maintain Canadian jobs and investment, and both companies have announced cuts in recent weeks.

Sources say Ottawa is reducing the remission quota for General Motors by 24 per cent, and is doing the same for Stellantis by 50 per cent.

General Motors this week announced it will end production of BrightDrop electric vans in Ingersoll, Ont., while Stellantis has announced a plan to move production of the Jeep Compass from Brampton, Ont., to Illinois.