Canada Auto Tariff Plan Targets EV Growth and Industry Stability
Canada’s auto tariff plan aims to protect jobs and speed up the electric shift. Prime Minister Mark Carney announced new steps to support the struggling car sector. The move comes as US tariffs continue to hit
Canadian factories and workers.
Carney’s plan offers financial support to companies that build cars in Canada. For example, firms like General Motors and Toyota can earn tariff credits. These credits will help offset rising costs from US trade measures. In addition, the government will bring back rebates for electric vehicles. These incentives should make EVs more affordable for buyers. As a result, officials hope to boost local demand and production.
US Tariffs Reshape The Industry
Last year, Washington imposed a 25% tariff on Canadian cars and parts. This step shocked the sector because most vehicles go to the US market. In fact, about 90% of Canadian car exports head south. Many US car companies already operate plants in Canada. However, tariffs have forced some firms to cut production. As a result, thousands of workers have lost their jobs.
Canada Looks Beyond The US
Ottawa now seeks new partners to reduce trade risks. For instance, Canada recently eased tariffs on Chinese electric vehicles. Officials also signed a deal with South Korea to attract new factories. These agreements may challenge US automakers in the region. However, leaders say diversification will protect the sector. Therefore, Canada hopes to build a more stable auto supply chain.
EV Targets With a New Approach
The government will also tighten vehicle emissions standards. Officials want electric cars to reach 90% of sales by 2040. This goal supports Canada’s climate plans and energy shift. At the same time, Carney dropped a strict EV sales mandate. Automakers had argued the rule was too expensive. Instead, the new policy focuses on emissions results. Some environmental groups criticized the decision. They worry the shift could slow the electric transition.
Still, officials say the plan balances climate goals and industry needs.
