Toronto,September 6(HS):

Prime Minister Mark Carney on Friday announced a pause on Canada’s 2026 electric vehicle sales mandate, which required automakers to ensure 20% of new car sales are electric, citing growing economic pressures from ongoing US trade tariffs. While the near-term EV target has been deferred, Carney affirmed that the long-term ambitions of 60% EV sales by 2030 and 100% by 2035 remain intact.

In tandem, Carney unveiled a new Buy Canadian policy intended to prioritize Canadian-made products in federal procurement and bolster domestic industries through a dedicated fund to support innovation and product development. The changes aim to shield Canada’s manufacturing sector from the impact of US tariffs, including a 25% levy on foreign vehicles and a 35% tariff on many Canadian goods, though exemptions exist under the USMCA agreement.

The pause on the EV target comes amid a weakening Canadian economy, with August job losses and an unemployment rate climbing to 7.1%, the highest since 2016 outside pandemic years. Opposition leaders criticized the move as a retreat that could stall investment in Canada’s auto industry. The government also announced a 60-day review of the EV mandate rules and ongoing efforts to ease trade tensions with the US, including support for sectors hit by Chinese retaliatory tariffs on Canadian agricultural products.

Carney’s policy response underscores the balance sought between economic nationalism and environmental commitments in a complex global trade landscape .

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Hindusthan Samachar / Jun Sarkar