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Canada Repeals EV Sales Mandate, Revives Rebates in Trade-Focused Auto Overhaul

Ottawa says the shift safeguards domestic manufacturing from U.S. auto tariffs, with key standards and program rules still to come.

Overview

  • The sales mandate is scrapped in favor of tougher tailpipe rules starting with model years 2027–2032, paired with goals for EVs to reach 75% of sales by 2035 and 90% by 2040.
  • A five-year, $2.3 billion rebate program returns, offering up to $5,000 for battery-electric and fuel‑cell vehicles and $2,500 for plug‑in hybrids, with incentives declining annually and ending after 2030 or when funds are exhausted.
  • Rebates apply to vehicles priced under $50,000 from countries with free‑trade agreements; Chinese‑made EVs are excluded and Canadian‑made EVs are exempt from the price cap.
  • $1.5 billion is earmarked through the Canada Infrastructure Bank to expand charging and hydrogen refuelling infrastructure nationwide.
  • Roughly $3 billion is allocated to help automakers invest and retain jobs, with work‑sharing and training supports, maintained counter‑tariffs on U.S. autos, and consultations on a new remission and tradeable import‑credit system, as officials prepare emissions modelling and detailed rules.