Prime Minister Mark Carney has stopped key electric vehicle sales targets while pushing for the “buy Canada” policy as his administration involves the impact of U.S. trade policy.
Carney said on Friday that Canadian automakers will no longer need to ensure 20% of new car sales will be electric next year. The new rules will also prioritize federal contract goods made in Canada and include a fund to help companies develop new products.
The move comes as Canada’s economy shows signs of weakening – 66,000 jobs were laid off in August and raised the unemployment rate to 7.1%.
“We have no control over the work of other countries,” Carney said. “We have control over what we give ourselves — what we build for ourselves.”
Although EV authorization will be suspended next year, the long-term target – 60% by 2030 and 100% by 2035 – will remain.
Carney’s predecessor Justin Trudeau carried out a task that required the number of new zero-emission vehicles in Canada in 2023.
Ottawa will also conduct a 60-day review of the EV authorization rules.
Sales of zero-emission vehicles reached 11.7% market share last year, government data showed.
Carney said Donald Trump imposed a 25% tariff on foreign vehicles — despite some exemptions from manufacturers in Canada and Mexico — a move that would help struggling departments manage U.S. tariffs.
The United States also imposes a 35% tariff on Canadian goods.
While the vast majority are exempted under the Canadian U.S.-Mexico agreement and many commodities are still able to cross border tariffs, industries such as automobiles, steel and aluminum have taken a huge blow.
Friday’s announcement was the reason for the slowing growth of new figures as new figures indicate economic uncertainty is slowing.
The National Bureau of Statistics said on Friday that Canada lost 66,000 jobs in August, mainly the result of a decline in part-time jobs.
The unemployment rate jumped 0.2 percentage points to 7.1%, the highest since May 2016, with a ban on 2020 and 2021 during the peak of the Kuvid pandemic.
This month, Canada abandoned its multibillion-dollar retaliatory tariffs as U.S. products attempted to restart trade talks with Washington, which focused on taxes in these specific sectors.
Carney said earlier this week that he had a “good conversation” with Trump on Monday about trade and hoped to provide some relief to those industries.
Ottawa will also support low-rapeseed farmers, with preliminary tariffs in China last month hitting 75.8% on seed imports.
According to U.S. policy, in October 2024, China’s levy was seen as a response to Ottawa’s 100% tariff on Chinese electric vehicles.
Health & Wellness Contributor
A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
