Canada– Canada has announced a waiver on its electric vehicle sales target, requiring 20% of all vehicles sold next year to be emissions-free.
Prime Minister Mark Carney stated that this move aims to provide immediate financial relief to automakers amid increased economic pressures due to US tariffs imposed by President Donald Trump.
“This will provide immediate financial relief to automakers at a time of increased pressures on economic competitiveness,” Carney said.
The Canadian government will also conduct a 60-day review to reduce costs associated with the EV sales requirement. Carney emphasized the need to support the industry, which is facing challenges due to punitive US measures targeting the steel and aluminum sectors.
To mitigate the impact of US tariffs, the Canadian government has introduced a $5 billion Canadian dollars ($3.6 billion US) fund with flexible terms to support firms across all sectors. Carney highlighted that the US measures are “causing extreme uncertainty that is holding back massive amounts of investment”.
Additionally, Ottawa will introduce a new policy requiring the federal government to buy from Canadian suppliers and provide over $370 million Canadian dollars ($267 million US) for farmers to address competitiveness challenges.
The move is part of Canada’s response to the US tariffs, which have raised concerns about the impact on the automotive industry and economy.
The Canadian Vehicle Manufacturers’ Association welcomed the decision, citing that the mandates imposed unsustainable costs on companies and threatened investment.
Carney noted that it’s too soon to determine whether Ottawa should lift the 100% tariffs imposed on Chinese-made electric vehicles last year.
Meanwhile, China has prolonged its probe into imports of canola from Canada, a significant supplier.
This development adds to the trade tensions between Canada and its trading partners. As global trade dynamics evolve, Canada’s efforts to support its industries and diversify its economy will be crucial in navigating these challenges.
Canada has waived its electric vehicle sales target, which required 20% of all vehicles sold next year to be emissions-free.
Prime Minister Mark Carney announced this move as part of an aid package to help companies deal with damage done by US tariffs imposed by President Donald Trump.
“This will provide immediate financial relief to automakers at a time of increased pressures on economic competitiveness,” Carney said. The Canadian government will conduct a 60-day review to reduce costs linked to the EV sales requirement.
The Canadian government has introduced a $5 billion Canadian dollars ($3.6 billion US) fund with flexible terms to support firms across all sectors affected by tariffs. Carney emphasized that the US measures are “causing extreme uncertainty that is holding back massive amounts of investment”.
Additionally, Ottawa will introduce a new policy requiring the federal government to buy from Canadian suppliers and provide over $370 million Canadian dollars ($267 million US) for farmers to address competitiveness challenges.
The Canadian Vehicle Manufacturers’ Association welcomed the decision, citing that the mandates imposed unsustainable costs on companies and threatened investment.
The waiver aims to provide immediate financial relief to automakers amid increased economic pressures due to US tariffs targeting the steel and aluminum sectors.
The move is part of Canada’s response to the US tariffs, which have raised concerns about the impact on the automotive industry and economy. Carney noted that it’s too soon to determine whether Ottawa should lift the 100% tariffs imposed on Chinese-made electric vehicles last year.
China has prolonged its probe into imports of canola from Canada, a significant supplier, adding to trade tensions between Canada and its trading partners.
Canada’s electric vehicle industry has been growing, with over 25,000 public EV chargers across the country. The government has allocated over $1.2 billion to support the deployment of more charging stations.
Many manufacturers have set their own EV sales targets aligning with federal targets, and some have announced investments in EV production and charging infrastructure. The Electric Vehicle Availability Standard aims to end the use of polluting light-duty vehicles by 2050.