TORONTO — Prime Minister Mark Carney announced significant measures on Friday to support Canadian industries affected by U.S. tariffs, including agriculture, steel, aluminum, and automotive sectors. He also revealed a review of certain climate policies from the Justin Trudeau administration.
One of the key announcements was the postponement of Canada’s zero-emission vehicle sales mandate, originally set to take effect in 2026. This mandate would have required at least 20% of new vehicle sales to be zero-emission by that year, with a goal of 100% by 2035. Carney stated that the government will conduct a 60-day review of the policy to address concerns raised by automakers and to "reduce costs."
In addition, Carney introduced a new "buy Canadian" policy. This initiative mandates that the federal government prioritize Canadian suppliers and local content when domestic options are unavailable. The policy will also apply to Crown corporations and aims to provide guidance for provinces and municipalities.
"Now we need to use government procurement using Canadian taxpayer dollars to spur Canadian businesses for longer-term prosperity to support Canadian industries," Carney said during his speech at an airplane manufacturing facility in suburban Toronto.
The announcement included a range of measures and funding initiatives, such as a $370 million biofuel production incentive and a $5 billion "Strategic Response Fund" designed to assist companies affected by tariffs in retooling and retraining employees. Carney emphasized the urgency of the situation, stating, "What’s going on is not a transition, it’s a rupture, and its effect will be profound. Workers displaced from their jobs, supply chains that have existed for decades disrupted."
This announcement comes as Canada faces economic challenges, with a reported loss of 66,000 jobs in August and an unemployment rate that has reached a nine-year high of 7.1%. Carney noted that decisive action is crucial in light of these troubling employment figures.
The review of climate policies includes potential changes to the Clean Fuel Regulations, which have been criticized by some, including Conservative leader Pierre Poilievre, who referred to them as "carbon tax 2.0." These regulations aim to promote innovation in green technologies and increase the use of low-carbon fuels. A government document stated, "The government intends to amend the Clean Fuel Regulations to strengthen the resiliency and spur the development of Canada’s low-carbon fuel sector. Only targeted amendments that advance this objective will be considered at this time."
Additionally, Finance Minister François-Philippe Champagne's office confirmed that a review is underway regarding the tariffs imposed on China’s electric vehicles, steel, and aluminum to determine if they should remain at current levels.