Carney pauses 2026 EV mandate, champions 'Buy Canadian' policy

Prime Minister Mark Carney has paused Canada’s 2026 electric vehicle (EV) sales target and unveiled a “Buy Canadian” strategy to support domestic industries hit by US tariffs.

Carney announced the suspension of the rule requiring 20% of new car sales to be electric by next year, while maintaining targets of 60% by 2030 and 100% by 2035. Ottawa will conduct a 60-day review of the EV mandate.

The measures aim to shield Canadian automakers from US President Donald Trump’s 25% tariffs on foreign vehicles. Some Canadian and Mexican manufacturers remain exempt.

Canada’s economy has shown signs of strain, losing 66,000 jobs in August and pushing the unemployment rate to 7.1%, its highest since 2016 outside the pandemic period.

Carney emphasized the need for self-reliance. “We cannot control what other nations do,” he said. “We can control what we give ourselves—what we build for ourselves.”

In addition, Ottawa will prioritise Canadian-made goods, help companies develop new markets and expand support to canola farmers facing steep Chinese duties.

The government is pausing short-term EV targets to mitigate tariff impacts while doubling down on its long-term zero-emission goals and domestic manufacturing drive.

This topic was reported by BBC News.

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