Canada Plans Delay of 2026 EV Sales Mandate Amid Trump Tariffs

Canada, under Prime Minister Mark Carney, is delaying the 2026 mandate requiring that 20% of all new vehicle sales be zero-emission vehicles, a policy originally set by former Prime Minister Justin Trudeau. This decision responds to challenges faced by the automotive industry due to U.S. President Donald Trump's tariffs, which have significantly reduced Canadian vehicle exports to the U.S. and pressured automakers, dealers, and parts manufacturers. The government plans to review the electric vehicle sales policy to ensure it aligns with current market realities, as industry representatives argue that the 2026 target is unrealistic without further support. Alongside the delay, Carney's administration will introduce measures to support industries most affected by the trade disruptions, including a forthcoming 'Buy Canada' procurement policy for federal institutions. The move reflects a broader shift away from some of Trudeau's environmental policies to prioritize protecting jobs and industry viability amidst the ongoing trade war. While zero-emission vehicle sales have recently fallen, the Canadian government and industry groups remain committed to the long-term energy transition but seek a more pragmatic timeline.