Canada Halts Electric Vehicle Sales Quotas Amid Trade Uncertainty

Canada Delays Plan to Force Automakers to Meet EV Sales Targets Amid Tariff Uncertainty The Canadian government announced Friday that it will delay a plan to force automakers to meet minimum sales levels for electric vehicles, citing the need to review the policy in light of ongoing trade tensions with the United States. The move is part of a series of measures aimed at supporting sectors affected by U.S. President Donald Trump's tariffs. According to sources, Prime Minister Mark Carney has ordered a 60-day review of the electric vehicle (EV) mandate, which will be waived for 2026 models. The review will examine the entire policy and determine 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 introduced as part of Canada's efforts to reduce greenhouse gas emissions and promote sustainable transportation. However, the Canadian Vehicle Manufacturers' Association (CVMA) has long argued that the policy imposes unsustainable costs on auto manufacturers, putting at risk Canadian jobs and investment in the sector. Brian Kingston, president of the CVMA, welcomed the government's decision 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 to our concerns and review the policy." Environmental groups, however, expressed disappointment with the delay, arguing that it undermines Canada's commitment to reducing greenhouse gas emissions. "This decision sends a mixed signal about Canada's commitment to climate action," said a spokesperson for the Sierra Club Canada Foundation. "We urge the government to move forward with the EV mandate and support the transition to a low-carbon economy." The review of the EV mandate is part of a broader examination of Canada's climate policies, which are expected to be completed in the coming months. The government has stated that it will continue to work towards its goal of reducing greenhouse gas emissions by 30 percent below 2005 levels by 2030. As the review process unfolds, automakers and environmental groups alike will be watching closely to see how the policy evolves. With the Canadian auto sector facing significant challenges due to U.S. tariffs, the government's decision to delay the EV mandate is seen as a pragmatic move aimed at supporting the industry during this period of uncertainty. *Reporting by Tech.*