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 amid ongoing uncertainty surrounding U.S. tariffs.
According to sources, Prime Minister Mark Carney has ordered a 60-day review of the EV mandate, which was set to take effect in 2026. The review will examine the entire policy and determine next steps. As part of this review, the government is waiving the mandate for 2026 models.
"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 a broader series of measures aimed at helping sectors affected by U.S. President Donald Trump's tariffs. The move is seen as an attempt to alleviate pressure on the Canadian auto industry.
Brian Kingston, president of the Canadian Vehicle Manufacturers' Association, welcomed the decision, calling it "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 in a statement.
Industry experts have long argued that the EV mandate would be challenging for automakers to meet, given the current state of the market. The delay is seen as a pragmatic move by the government to address these concerns.
The review of the EV mandate is part of a broader examination of Canada's climate measures. Carney noted that the government is taking a comprehensive look at its policies and their impact on various sectors.
As the review gets underway, automakers are breathing a sigh of relief. However, environmental groups have expressed disappointment with the decision, arguing that it undermines efforts to reduce greenhouse gas emissions.
The delay in implementing the EV mandate has sparked debate among stakeholders. While some see it as a necessary step to protect Canadian jobs and investment, others view it as a setback for climate action.
The review is expected to take 60 days, after which the government will reassess its policy on EV sales targets. As the process unfolds, all eyes will be on Carney's administration to determine the next course of action.
In related news, the Canadian government has announced additional measures to support sectors affected by U.S. tariffs. These include investments in research and development, as well as initiatives aimed at promoting trade with other countries.
The move is seen as an effort to mitigate the impact of Trump's tariffs on the Canadian economy. However, critics argue that it may not be enough to address the underlying issues facing the auto industry.
As the situation continues to unfold, one thing is clear: the future of Canada's EV policy remains uncertain.
*Reporting by Tech.*
