Thu, 05 Feb 2026

Thu, 05 Feb 2026 Canada unveils auto industry plan in latest pivot away from US

The steps to bolster Canada's auto industry come as Trump's tariffs strain the sector and threaten jobs.

* Prime Minister Mark Carney has announced a plan to support Canada's car industry and electric vehicle transition in response to US tariffs.
* The plan includes financial incentives for carmakers, rebates for EVs, and a new tariff scheme offering credits to car companies that produce vehicles in Canada.
* Canada will also introduce stronger emissions standards for new vehicles, with a goal of 90% of car sales being EVs by 2040.
* The government has scrapped an electric vehicle sales mandate introduced by former Prime Minister Justin Trudeau, citing a need to avoid "undue burdens" on the auto industry.
* Environmental groups have criticized the decision to abandon the sales mandate.
* The plan is seen as an effort to reduce Canada's reliance on the US and take advantage of trade opportunities with other countries, such as China and South Korea.
  >>