Canada unveils plan to fortify auto industry and accelerate EV shift away from the U.S.
Canada announced a comprehensive plan to boost its auto sector and accelerate its electric-vehicle transition amid U.S. tariff pressure, including investment incentives for carmakers, reintroduced EV purchase rebates, and a tariff-offset credits scheme. The measures also introduce tougher emissions standards with a goal of 90% EV sales by 2040, while scrapping Trudeau’s 2023 EV mandate. The policy signals diversification from the U.S., with recent deals involving China and Korea, and comes as the USMCA faces review; environmental groups oppose the shift away from the mandate.