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Canada Pauses 2026 EV Sales Target, Orders 60-Day Review as Tariffs Hit Auto Sector

The 60-day process will examine potential target adjustments to lower compliance costs for automakers.

Overview

  • Prime Minister Mark Carney removed the 2026 Electric Vehicle Availability Standard requirement and launched a review that could amend annual ZEV targets, including the 2035 goal.
  • Ottawa announced industry relief that includes a $5 billion Strategic Response Fund, a $370 million biofuel production incentive, and a Buy Canadian approach in federal procurement.
  • The government cited U.S. trade measures and liquidity pressures on manufacturers, saying the EV mandate added costs during the tariff fight.
  • EV market share fell after federal purchase rebates expired, with Statistics Canada showing roughly 8% of new sales in June versus peaks near 18% when incentives were available.
  • Provinces with their own rules, notably British Columbia and Quebec, indicated potential changes, with B.C.’s energy minister pointing to forthcoming adjustments in a CleanBC review.