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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