Canada Unveils Auto Industry Plan, Scraps 2035 EV Mandate

Will this plan strengthen Canada's auto sector in the face of Trump tariffs, mask hidden risks for domestic manufacturers or expose the industry to Chinese control?
Canada Unveils Auto Industry Plan, Scraps 2035 EV Mandate
Above: Canadian Prime Minister Mark Carney speaks during a press conference in Vaughan, Canada, on Feb. 5, 2026. Image credit: Mert Alper Dervis/Anadolu/Getty Images

The Spin

Pro-government narrative

Scrapping the 2035 EV mandate strengthens Canada's auto sector competitiveness at a critical moment when Trump's tariffs threaten jobs and investment. Ending the mandate helps attract new investments while federal funding for infrastructure and training complements provincial supports to protect Ontario's economic engine. This pragmatic shift toward demand-side policies like charging infrastructure and affordability measures follows evidence from successful EV-adopting countries and positions Canada to lead in electrification.

Government-critical narrative

The so-called mandate removal is pure deception — requiring 75% EV sales by 2035 through emissions standards is just an EV mandate renamed. This policy forces Canadian manufacturers to meet stricter standards than the U.S. while subsidizing American-made EVs that Canadians will buy, driving production south and making our industry less competitive. The new greenhouse gas regulations will strand Canadian-built vehicles in showrooms while Trump rolls back emissions standards, creating an impossible situation for domestic automakers.

Pro-Trump narrative

Prime Minister Carney will live to regret this new anti-U.S. auto plan. Despite the backlash to tariff threats, President Trump is simply trying to protect Canada from a long-term disaster by opening its market to Chinese EVs. China doesn't want a partnership — it wants control, using subsidized EVs to hollow out domestic industries, as seen in Brazil and Europe. Trump's hard line is about defending the integrated North American auto sector so Canada can survive and thrive alongside the U.S., not be quietly dominated by Beijing.

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© 2026 Improve the News Foundation.

All rights reserved.

Version 6.20.3