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Carney pauses electric vehicle mandate, announces new 'buy Canadian' policy

Prime Minister Mark Carney announced a 60-day review and a $5 billion fund to support Canadian automakers amid trade tensions and US tariffs impacting the industry.

  • Prime Minister Mark Carney announced the waiver of the electric vehicle sales target for 2026 models, a policy introduced by former Prime Minister Justin Trudeau requiring 20 percent sales in Canada to be electric.
  • Carney stated that pausing the mandate is a measure to provide immediate financial relief for automakers facing pressure due to U.S. tariffs, signaling a shift in climate policy.
  • Debora Van Nijnatten, a professor at Wilfred Laurier University, expressed concern that this decision weakens regulations aimed at reducing emissions and could harm Canada's competitiveness in the electric vehicle market.
  • Bloc Québécois climate critic Patrick Bonin criticized Carney's decision, stating it weakens environmental efforts and undermines the availability of electric vehicles.
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Prime Minister Mark Carney announced on Friday that he will exempt the 2026 vehicle models from the requirements of the standard on the availability of electric vehicles and that a review of this policy will be launched.

·Montreal, Canada
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Financial Post broke the news in Canada on Friday, September 5, 2025.
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