The federal government is expected to announce a new strategy for Canada’s automobile manufacturing industry on Thursday, with Prime Minister Mark Carney set to make the announcement in the Greater Toronto Area as the sector faces pressure from U.S. tariffs.
Carney’s office has billed the event as an announcement of “new measures to transform Canada’s auto manufacturing sector for the future,” as Canada’s integrated North American auto supply chain confronts a 25% U.S. tariff on Canadian vehicles and ongoing trade uncertainty.
Canada auto strategy shifts away from EV sales mandate
Government and industry sources said the strategy will scrap the electric vehicle sales mandate and replace it with new vehicle emissions standards, according to The Canadian Press.
The planned shift would mark a change in how Ottawa seeks to lower transportation emissions, moving from a sales target framework toward standards tied to vehicle emissions performance.
Industry under pressure from U.S. tariff threat
Canada’s auto industry has been bracing for sustained trade friction with Washington. The United States has imposed a 25% tariff on Canadian vehicles, and President Donald Trump has threatened further tariffs on “all goods” from Canada, citing a trade deal with China.
Automakers and parts suppliers have warned that additional tariffs could disrupt production planning, investment decisions, and cross-border supply chains that rely on frequent movement of components between Canada and the United States.
Technical briefing scheduled alongside announcement
Senior officials from Innovation, Science and Economic Development Canada, Transport Canada, and Environment and Climate Change Canada are scheduled to hold a technical briefing on the new auto strategy on Thursday morning in Ottawa, according to a federal media advisory.
The government has not publicly released full details of the strategy ahead of the announcement.
