Canadian automakers push PM Carney to scrap EV mandate amid U.S. tariffs and falling sales, sparking debate over jobs, trade, and climate goals.
Auto CEOs Urge Carney to Rethink EV Policy Amid Tariffs
Canada’s largest automakers are calling on Prime Minister Mark Carney to shelve the country’s ambitious zero-emission vehicle (ZEV) mandate. In a high-stakes meeting this week in Ottawa, the heads of the big three automakers argued that continued U.S. tariffs on steel, aluminum, and vehicles are strangling the industry. They warned that maintaining the mandate in its current form could cost thousands of Canadian jobs.
Mounting Trade Pressures Strain ZEV Mandate Feasibility
The ZEV mandate, introduced to support Canada’s emission-reduction targets, requires 20% of new vehicles sold by 2026 to be zero-emission, scaling up to 100% by 2035. But industry leaders say this is no longer realistic. U.S. tariffs have driven a 23% drop in Canadian light-duty vehicle exports, according to Statistics Canada, while domestic EV sales fell 28.5% year-over-year in April, down to just 7.5% of total sales.
Behind the Shift: Economic Survival Over Environmental Targets?
Carney, who recently axed Canada’s digital services tax to preserve trade talks with Washington, faces tough decisions. Ending or easing the ZEV mandate could help protect an auto sector battered by the trade war — but would risk undermining Canada’s climate commitments. Political analysts suggest Carney may try to delay targets rather than abandon them outright, balancing environmental ambition with economic necessity.
How Industry Leaders Want Ottawa to Act
Flavio Volpe of the Automotive Parts Manufacturers’ Association and Brian Kingston of the Canadian Vehicle Manufacturers’ Association are urging immediate relief. They’ve asked for the reinstatement of federal EV rebates — which ran out of funding in January — and for penalties linked to the mandate to be paused. Both argue that aligning Canada’s policies with current market realities, rather than U.S. retreat from EV goals, is key.
What’s Next for Canada’s EV Future?
While the U.S. has scrapped its own ZEV mandate and tax credits under former President Donald Trump, Canadian industry experts warn against following suit. Volpe stresses that Canada’s natural resources, technology sector, and clean energy advantage position it well for an EV future — if the government adjusts its approach. A revised mandate, fresh incentives, and support for retooling factories could help Canada stay competitive as global markets continue to electrify.
Navigating Political and Industrial Crossroads
The coming months will test Carney’s ability to reconcile green policy with industrial survival. With Canada’s auto sector at risk and climate goals on the line, the decisions ahead could reshape both the economy and the political landscape. For now, the future of Canada’s EV mandate hangs in the balance.
