Prime Minister Mark Carney has paused a key electric vehicle sales target while pushing for a "Buy Canadian" policy, as his government deals with the impact of US President Donald Trump's tariffs.
Canadian automakers will no longer be required to ensure 20% of new car sales are electric by next year, Carney said on Friday. New rules will also prioritise Canadian-made goods and assist firms to develop new markets and products.
The moves come as Canada's economy has shown signs of weakening - shedding 66,000 jobs in August and pushing unemployment to 7.1%.
"We cannot control what other nations do," Carney said. "We can control what we give ourselves - what we build for ourselves."
While the EV mandate from next year will be paused, the longer-term goals - 60% by 2030 and 100% by 2035 - will remain.
