Canada Postpones Plan to Force Automakers to Meet EV Sales Targets Amid Tariff Concerns
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 concerns over U.S. President Donald Trump'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 potential next steps. As part of this review, automakers will be exempt from meeting the sales targets for their 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 introduced as part of Canada's efforts to reduce greenhouse gas emissions and promote the adoption of electric vehicles. However, automakers have expressed concerns that the policy imposes unsustainable costs on manufacturers, putting Canadian jobs and investment at risk.
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.
Industry experts point out that the delay is a response to the significant impact of Trump's tariffs on Canada's automotive sector. The tariffs have led to increased production costs for automakers, making it more challenging to meet sales targets.
The review will also examine broader climate measures implemented by the government. "We recognize that we need to take a step back and look at our entire approach," Carney said.
As the review gets underway, automakers are breathing a sigh of relief. However, environmental groups have expressed concerns about the delay, citing the need for urgent action on climate change.
The Canadian government's decision to postpone the EV mandate has sparked debate among stakeholders. While some see it as a necessary response to economic pressures, others view it as a setback in Canada's efforts to address climate change.
The 60-day review is expected to provide clarity on the future of the EV mandate and its impact on the automotive sector.
*Reporting by Tech.*
