Canada Delays Plan to Force Automakers to Hit 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 amid concerns over U.S. tariffs. The move is part of a series of measures announced Friday to support sectors affected by President Donald Trump's trade policies.
According to sources, Prime Minister Mark Carney will conduct a 60-day review of the EV mandate, which was set to take effect in 2026. The review will examine the entire policy and potential 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 designed to encourage automakers to increase production and sales of electric vehicles. However, critics argue it imposes unsustainable costs on 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." He stated, "The EV mandate imposes unsustainable costs on auto manufacturers, putting at risk Canadian jobs and investment in this critical sector of the economy."
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. "We urge the government to revisit the EV mandate and ensure it remains on track to meet our emissions targets."
The Canadian government has been working to mitigate the impact of U.S. tariffs, which have affected various sectors, including the auto industry. The review of the EV mandate is part of a broader examination of climate policies.
As the review gets underway, automakers will not be required to meet the EV sales targets for 2026 models. The delay provides temporary relief but leaves uncertainty about the future of the policy.
The outcome of the review and potential changes to the EV mandate remain unclear. However, one thing is certain: the Canadian government's decision has significant implications for the auto industry and the country's climate goals.
*Reporting by Tech.*
