A charging port is seen on an electrical vehicle at the Canadian International AutoShow in Toronto in a file photo. Mark Blinch/Reuters
Automotive CEOs asked Prime Minister Mark Carney this week to repeal his government’s Electric Vehicle (EV) mandate that requires all vehicles sold in Canada to have zero-emissions by 2035.
The CEOs of Ford Canada, Stellantis Canada, and GM Canada, as well as the Canadian Vehicle Manufacturers’ Association, met with Carney on July 2.
Canadian Vehicle Manufacturers’ Association CEO Brian Kingston told reporters before the meeting that the government’s Electric Vehicle mandate was “not sustainable.”
“The targets that have been established cannot be met, and that will be part of the discussion,” he said, adding that they would also discuss the importance of Canada’s auto sector and “ensuring its continued success.”
According to the Prime Minister’s Office (PMO), Carney and the auto sector leaders discussed the trade tensions with the U.S., as well as “the need to build up a made-in-Canada supply chain as well as diversify our trading partners.”
The PMO did not mention any discussions about Ottawa’s EV mandate, which states that at least 20 percent of new light-duty vehicles offered for sale in 2026 must be zero-emission, with the share rising each year until reaching 100 percent in 2035.
The monthly share of new vehicle sales attributed to EVs peaked at 18.29 percent in December 2024, but declined to 7.53 percent of all new vehicle sales in Canada by April of this year.
Canada has allocated more than $46 billion in 13 electric vehicle, battery, and battery component manufacturing projects since 2020, providing subsidies for factories in cities such as St. Thomas, Ont., and Windsor.
The Liberals have also said they will expand Canada’s EV charging network by supporting the building of thousands of new stations by 2027.
Ottawa introduced an incentive program in 2019 for Zero-Emission Vehicles, offering purchase rebates of up to $5,000 to ZEV buyers. The program ended in March, but Environment Minister Julie Dabrusin recently said the government is working to bring back an EV rebate of some kind. She did not provide details on whether it would be a restoration of the original program or something new.
When Dabrusin was asked about the EV mandate on July 3, she said Carney had expressed to her that the “environment is very important to him” when he appointed her as environment minister. She said the government would also be engaged in creating a strong economy and securing energy resources.
“We know it’s very important to Canadians that as we do this, we’re doing it properly, and that we’re doing it in a way that actually supports a strong country as a whole, that takes into account our nature and the like,” she added.
Tariff Discussions
Carney and the automotive representatives discussed “federal measures to safeguard Canadian auto workers and businesses from unjust tariffs” during the July 2 meeting, the PMO said. They also touched on the potential adjustment of counter-tariffs on July 21, “based on the state of negotiations” with the U.S.
Carney and U.S. President Donald Trump have set that date as a deadline for ongoing trade negotiations. If a deal is not reached by then, Carney has said he will boost countermeasures.
“The leaders also discussed opportunities to make Canada’s auto sector more sustainable and competitive in the face of shifting trade relationships, market conditions, and supply chains,” the PMO said.
The White House has imposed 25 percent tariffs on vehicles and vehicle parts imported from all countries including Canada. However, imported vehicles from Canada and Mexico that are compliant with the United States-Mexico-Canada Trade agreement (USMCA) will only be subject to the 25 percent tariff on the value of content produced outside of the United States.
Washington has also put 25 percent tariffs on all imports from Canada not covered by the USMCA agreement, 50 percent tariffs on steel and aluminum, and 10 percent tariffs on energy and potash.
Trump announced on June 27 his decision to end all trade negotiations with Canada because of its plan to impose a Digital Services Tax that would impact U.S. tech companies. Ottawa said on June 29 it would rescind the tax, and trade negotiations have resumed.
Matthew Horwood is a reporter based in Ottawa.