Canada Delays Plan to Force Automakers to Meet EV Sales Targets Amid Tariff Concerns
The Canadian government has delayed a plan to force automakers to meet minimum sales levels for electric vehicles, citing the need to review the policy in light of U.S. President Donald Trump's tariffs. The move is part of a series of measures announced Friday to help sectors affected by the tariffs.
According to sources, Prime Minister Mark Carney has ordered a 60-day review of the EV mandate, which will be waived for 2026 models. The review will examine the entire policy and next steps. "We have an auto sector which, because of the massive change in U.S. policy, is under extreme pressure," Carney said at a news conference in Mississauga, Ont. "They've got enough on their plate right now. So we're taking that off."
The EV mandate was part of Canada's efforts to reduce greenhouse gas emissions and promote electric vehicle adoption. However, critics argue that the policy imposes unsustainable costs on auto manufacturers, putting Canadian jobs and investment at risk.
Brian Kingston, president of the Canadian Vehicle Manufacturers' Association, welcomed the delay as an "important first step." "The EV mandate imposes unsustainable costs on auto manufacturers, putting at risk Canadian jobs and investment in this critical sector of the economy," he said. "We appreciate the government's willingness to listen and review its policies."
Environmental groups, however, expressed disappointment with the decision. "This is a setback for Canada's climate goals," said a spokesperson for the Sierra Club Canada Foundation. "The EV mandate was an important step towards reducing emissions and promoting sustainable transportation."
The delay in implementing the EV mandate comes as the Canadian government conducts a broader review of its climate measures. The review will examine the effectiveness of various policies, including the EV mandate, and identify areas for improvement.
In related news, the Canadian government has announced additional support for sectors affected by the U.S. tariffs, including funding for research and development and assistance for workers who have lost their jobs due to the trade dispute.
The 60-day review of the EV mandate is expected to conclude in late November. The outcome will determine whether the policy will be reinstated or modified in some way.
*Reporting by Tech.*
