Prime Minister Mark Carney is postponing a plan that would require automakers to meet minimum sales targets for electric vehicles (EVs) next year. This decision comes amid challenges faced by the industry, particularly due to U.S. tariffs.

Sources familiar with the situation, who requested anonymity because they were not authorized to speak publicly, indicated that the EV mandate will be paused while the government conducts a review of the policy. This review is expected to last 60 days and will assess the entire mandate and potential next steps.

This shift marks a departure from the climate agenda of Carney's predecessor, former Prime Minister Justin Trudeau. Trudeau introduced the electric vehicle availability standard, known as the zero-emission vehicle (ZEV) mandate. This mandate set escalating sales targets for light-duty vehicles, starting at 20 percent in 2026 and aiming for 100 percent by 2035.

Automakers have been advocating for the Liberal government to eliminate the mandate, arguing that it could severely impact their businesses and jeopardize thousands of jobs. The pause in the mandate coincides with Carney's plans to announce support measures for sectors affected by U.S. President Donald Trump's trade policies.

The EV mandate has also faced political scrutiny, particularly from the Conservative Party. They have criticized the Liberal government, claiming that it intends to make gas-powered vehicles "illegal" and force consumers to purchase "expensive" electric vehicles.

The review of the EV mandate has been previously reported, highlighting the ongoing debate over the future of electric vehicle policies in Canada.