Canada Rolls Out Auto Sector Strategy Amid Shift From US Reliance

Canada’s Prime Minister Mark Carney just rolled out a fresh plan to pump up the country's auto sector, focusing big on electric vehicles. It's all about shaking off heavy reliance on the US, especially with those pesky tariffs from President Donald Trump causing headaches.

On February 5, 2026, in Vaughan, Ontario, Carney announced this national automotive strategy. They're ditching the old rule that said all new cars sold in Canada had to be zero-emission by 2035. Instead, they're replacing it with rebates to make EVs more affordable.

Imagine this: a new $2.3 billion program offering up to $5,000 off for folks buying or leasing battery-electric rides. The goal? Get EVs to snag three-quarters of sales in just 10 years. Plus, they're incentivizing carmakers with funding to invest locally, integrating AI and advanced tech for smarter vehicles.

Trump's push for US-made cars has slapped 25% tariffs on Canadian exports, messing with jobs and factories. Canada fired back with matching tariffs on American vehicles, but this plan's about going solo stronger. This could save thousands of jobs in places like Ontario and Quebec, where auto plants are huge.

Carney's all-in on Canada's EV dominance. Risky move, but exciting.

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