Canada is delaying a plan to enforce minimum electric vehicle sales mandates for local automakers, Bloomberg reported on Friday, as Ottawa seeks to support a sector battered by U.S. trade tariffs.
Prime Minister Mark Carney’s government will make the announcement on Friday among a series of measures aimed at industries most vulnerable to U.S. President Donald Trump’s trade tariffs, Bloomberg reported, citing people familiar with the matter.
Former Prime Minister Justin Trudeau had introduced measures mandating that at least 20% of new vehicle sales be zero-emmission by at least 2026. But instead of now enforcing that target, Ottawa plans to review the mandate to ensure it does not adversely affect local carmakers.
Canada was slapped with a 35% tariff on all exports to the U.S. not covered by the 2020 free trade agreement. Automobiles face a 25% tariff, with the duty affecting several U.S. automakers that have operations in the country.
Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), and Stellantis NV (BIT:STLAM) all have plants in Ontario.
But a scaling down in automaking threatens thousands of jobs across Canada– a scenario that the Carney government is now attempting to avoid.
Separately, the Wall Street Journal reported on Thursday that Trump is preparing to renegotiate the 2020 free trade agreement with Canada and Mexico. The deal is due for review in 2026.
Source :
https://www.investing.com/news/economy-news/canada-plans-to-delay-ev-sales-mandate-to-support-automakers-bloomberg-4225934
