Prime Minister Meets Auto CEOs Amid U.S. Tariff Tensions
Prime Minister Mark Carney met with leaders from Ford Canada, Stellantis Canada, and GM Canada on Wednesday to discuss growing concerns over U.S. tariffs and the need to fortify Canada’s auto supply chains. The talks come as U.S. President Donald Trump intensifies pressure to shift car production back to American soil.
Focus on Supply Chains and Global Diversification
According to a readout from the Prime Minister’s Office (PMO), discussions focused on building a “made-in-Canada” supply chain and expanding trade partnerships beyond the U.S. The urgency stems from 25% tariffs the U.S. has imposed on Canadian-assembled vehicles—excluding American-built parts, which are deeply embedded in North America’s auto production network.
EV Mandate Sparks Industry Pushback
The meeting also tackled Canada’s zero-emission vehicle (ZEV) mandate, which automakers say is unrealistic and unsustainable. Brian Kingston, head of the Canadian Vehicle Manufacturers’ Association, called for the immediate repeal of the mandate. “The targets that have been established cannot be met,” Kingston said, citing a sharp decline in EV sales as federal rebates ran out earlier this year.
Sales Slump Highlights Policy Concerns
Recent Statistics Canada data shows EVs accounted for just 7.53% of new vehicle sales in April, down from 18.29% in December 2024. With no federal rebates currently in place, affordability has once again become a major barrier. The government says a revised rebate is in the works, though details remain unclear.
Conservative Criticism and Industry Alarm
Conservative MP Raquel Dancho joined the industry’s call to scrap the mandate, labeling the Liberal policy “irresponsible.” David Adams, CEO of the Global Automakers of Canada, said meeting ZEV targets for 2026 is “not feasible” and that the policy diverts attention from more pressing trade issues with the U.S.
Trade Talks Face Tight Timeline
Canada and the U.S. recently resumed stalled trade negotiations after Carney dropped a proposed digital services tax that had angered Washington. With a self-imposed deadline of July 21 for a new deal, Carney has warned that retaliatory trade measures could follow if talks break down.
Balancing Environment, Economy, and Trade
As Canada navigates climate goals, economic pressures, and diplomatic friction, industry leaders are pushing for flexibility and pragmatism. Adams said he believes Carney understands the complexity of the situation: “My sense of the prime minister is that he’s a pretty pragmatic person.”
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