Canada Postpones Electric Vehicle Sales Mandate Amid Tariff Uncertainty

Canada Delays Plan to Force Automakers to Meet EV Sales Targets Amid Tariff Uncertainty OTTAWA, ONTARIO - Prime Minister Mark Carney announced Friday that the Canadian government will delay a plan to force automakers to meet minimum sales levels for electric vehicles (EVs) as part of a broader effort to mitigate the impact of U.S. President Donald Trump's tariffs on the country's auto sector. According to sources, the EV mandate, which was set to take effect in 2026, will be paused while the government conducts a 60-day review of the policy. During this time, automakers will not be required to meet the sales targets for EVs. The review is expected to examine the entire mandate 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, Ontario. "They've got enough on their plate right now. So we're taking that off." The decision to delay the EV mandate was welcomed by Brian Kingston, president of the Canadian Vehicle Manufacturers' Association (CVMA). "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 in a statement. Kingston's comments reflect concerns raised by automakers about the feasibility of meeting the sales targets for EVs. The CVMA has argued that the mandate would lead to increased production costs, which could ultimately harm the industry and put jobs at risk. The delay is part of a series of measures announced by the government to help the auto sector cope with the impact of Trump's tariffs. The tariffs, imposed in May 2019, have led to higher costs for Canadian automakers and have raised concerns about the competitiveness of the industry. The review of the EV mandate will be conducted as part of a broader examination of Canada's climate measures. Carney has stated that the government is committed to reducing greenhouse gas emissions and promoting sustainable transportation options. As the review gets underway, stakeholders are watching closely to see how the delay will affect the auto sector. Automakers have expressed relief at the decision, but environmental groups have raised concerns about the potential impact on efforts to reduce carbon emissions. The 60-day review is expected to provide clarity on the future of the EV mandate and its implications for the auto sector. In the meantime, automakers will continue to operate under existing regulations, and consumers can expect to see a mix of gasoline-powered and electric vehicles on Canadian roads. Background: Canada's auto sector has been facing significant challenges in recent years due to changes in U.S. trade policies. The tariffs imposed by Trump have led to higher costs for Canadian automakers, which have struggled to adapt to the new reality. The EV mandate was introduced as part of Canada's efforts to reduce greenhouse gas emissions and promote sustainable transportation options. However, automakers have raised concerns about the feasibility of meeting the sales targets for EVs, citing increased production costs and logistical challenges. Additional Perspectives: Environmental groups have expressed disappointment at the delay in implementing the EV mandate. "We understand that the auto sector is facing significant challenges, but we cannot afford to delay efforts to reduce carbon emissions," said a spokesperson for the Sierra Club Canada Foundation. The review of the EV mandate will provide an opportunity for stakeholders to weigh in on the policy and its implications for the auto sector. As the process unfolds, it remains to be seen how the government will balance competing interests and priorities in the pursuit of a more sustainable transportation future. *Reporting by Tech.*