Canada Unveils Auto Industry Plan in Latest Pivot Away From US

Canadian Prime Minister Mark Carney has announced a sweeping plan to shore up the country's auto industry and accelerate its electric vehicle transition, the latest in a series of moves to reduce Canada's deep economic dependence on the United States as American tariffs continue to batter the sector. The plan includes financial incentives for carmakers to invest in Canada, a new tariff credit scheme for manufacturers like General Motors and Toyota, and the reintroduction of EV buyer rebates. Canada will also enact stricter vehicle emissions standards and has set a goal of EVs comprising 90% of car sales by 2040. Carney at the same time scrapped a 2023 EV sales mandate introduced by former PM Justin Trudeau that automakers had called too costly. The announcements follow a deal last month with China to ease tariffs on Chinese EVs and an agreement with South Korea to encourage Korean car manufacturing in Canada. Roughly 90% of Canadian-made vehicles are exported to the US, and thousands of auto workers have lost their jobs since Trump imposed 25% tariffs on Canadian cars and parts last year.

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