Carney pushes for 'Buy Canadian' policy and pauses EV targets for 2026

September 5, 2025

Prime Minister Mark Carney has suspended Canada's requirement that 20% of new car sales be electric by 2025, while maintaining longer-term EV targets of 60% by 2030 and 100% by 2035. Simultaneously, he announced a "Buy Canadian" policy prioritizing domestic products for federal contracts and creating a fund to help firms develop new products. These policy changes come as Canada faces economic challenges including job losses of 66,000 in August, a 7.

Who is affected

Canadian automakers and car dealers
Electric vehicle manufacturers and consumers
Canadian firms eligible for the new development fund
Canadian workers (given the rising unemployment rate)
Canola farmers facing Chinese duties
Steel and aluminum industries hit by U.S. tariffs

What action is being taken

Pausing the 20% electric vehicle sales target for 2025
Implementing a "Buy Canadian" policy for federal contracts
Creating a fund to assist Canadian firms in developing new products
Conducting a 60-day review of EV mandate rules
Engaging in trade negotiations with Washington after dropping some retaliatory tariffs
Bringing in support for canola farmers affected by Chinese duties

Why it matters

Canada's economy is weakening with 66,000 jobs lost in August and unemployment rising to 7.1%
U.S. tariffs (25% on foreign vehicles and 35% on various Canadian goods) are impacting Canadian industries
The EV mandate pause allows the auto sector more flexibility while facing trade pressures
Canadian canola farmers are dealing with 75.8% preliminary duties from China on seed imports
Current EV adoption (11.7% market share in 2023) falls short of the original 20% target for 2025

What's next

No explicit next steps stated in the article

Read full article from source: BBC