Canada to give automakers a break on EV sales target as US tariffs weigh

As part of a business assistance package to help businesses recover from tariff losses from US President Donald Trump, Canada will waive the requirement that 20% of all vehicles sold next year be emissions-free.

The announcement was made on Friday by Prime Minister Mark Carney.

The Liberal government of Justin Trudeau’s era, in 2023, mandated the 20 percent target&nbsp.

Waiving the rule, according to Carney, Trudeau’s successor, would assist the industry in adjusting to punitive US regulations that also target the steel and aluminum industries.

At a televised press conference, Carney stated, “This will provide immediate financial relief to automakers.”

Ottawa will also begin a 60-day review right away to lower costs associated with the requirement for EV sales.

The move was welcomed by the Canadian Association of Automobile Manufacturers, who argued that mandates would increase business costs and threaten investment.

Carney said it was too early to determine whether Ottawa should impose the 100-percent tariffs on Chinese-made electric vehicles last year. China launched an investigation into the imports of canola from Canada, one of the top suppliers in the world, on Friday.

Carney, who won an April election to support the need to diversify the US economy, promised to establish a new fund with flexible terms worth $5 billion Canadian ($3.6 billion US) to assist businesses in all of the affected industries.

He claimed that the US measures are “causing extreme uncertainty that is holding back enormous amounts of investment.”

With more than $ 370 million Canadian dollars ($267 million US) for farmers to address immediate competitiveness challenges, Ottawa will introduce a new policy to ensure the federal government purchases from Canadian suppliers.