Canada Delays Electric Vehicle Mandate Amid Tariffs Pressure
Canadian Prime Minister Mark Carney has delayed a mandate for automakers to meet minimum electric vehicle sales due to US tariffs. This decision aligns with industry's challenges. Carney announced support measures for affected sectors, recognizing the trade disruptions impacting the Canadian economy and the critical auto industry.
- Country:
- Canada
Canadian Prime Minister Mark Carney has announced a delay in the implementation of a mandate requiring automakers to achieve minimum sales levels for electric vehicles. This decision comes as the sector grapples with the pressures from tariffs imposed by US President Donald Trump's administration.
The mandate, initially set by former Canadian Prime Minister Justin Trudeau, called for 20% of passenger vehicles sold in 2026 to be zero-emission vehicles. However, Carney cites the industry's current financial struggles as a reason for the delay. The Canadian Vehicle Manufacturers' Association had lobbied for this postponement.
Carney also emphasized the broader economic impacts of US tariffs, highlighting new measures to support workers and businesses in affected sectors. This includes making employment insurance more flexible and providing extended benefits. Carney remarked on the challenges posed by specific tariffs under the United States-Mexico-Canada Agreement (USMCA), which continues to strain the Canadian auto sector.
(With inputs from agencies.)
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