Advocates for electric vehicles in Canada are urging the federal government to ease regulations on European-made cars. They believe this change could enhance competition in the Canadian market. Former Quebec environment minister Daniel Breton led a group of environmental and pro-EV organization heads in Ottawa on Tuesday to present their case.

The group emphasized the need for the government to maintain some level of the electric vehicle (EV) sales mandate while providing stability for the industry. They specifically called for a reduction in regulatory barriers for European vehicles. Merran Smith, president of New Economy Canada, stated, "The rest of the world has vehicle regulations and North America has a unique set that’s different. That’s what blocks all these different models that could come from Europe and from other places. Keep in mind, we already have a free trade agreement with Europe. So it shouldn’t be that much of a problem."

Industry Minister Mélanie Joly addressed reporters, indicating that Canada is exploring options to increase the import of EVs from Europe, South Korea, and Japan. The advocates also expressed willingness to accept modifications to the current EV sales mandate, which requires that all new vehicles sold in Canada be zero-emission by 2035. Breton remarked, "To us, I think that’s already a step to show we’re being pragmatic."

The existing sales mandate stipulates that automakers must ensure a certain percentage of new vehicle sales are zero-emission. This mandate applies to light-duty vehicles, including sedans, SUVs, and pickup trucks. Plug-in hybrid vehicles also contribute to meeting sales targets. Automakers that do not meet the targets can purchase credits through a cap-and-trade system or invest in electric vehicle charging stations to earn credits.

The mandate is set to begin next year, requiring that 20 percent of all new vehicle sales be zero-emission, with a gradual increase to 100 percent by 2035. Recently, the federal government suspended the mandate for 2026 to provide the auto sector with more liquidity amid U.S. tariffs and initiated a 60-day review of the mandate.

Breton also commented on the 100 percent tariff on Chinese EVs, describing it as "a bit high" and suggesting that reducing the tariff could positively influence EV adoption in Canada. Sales of electric vehicles declined in 2025 after the government halted a rebate program that offered up to $5,000 to buyers of new EVs.

Joly did not provide a definitive answer regarding the potential reduction of the 100 percent tariff on Chinese EVs, which is under review and expected to be addressed by the end of the month. Canadian automakers have expressed concerns that lowering the surtax on Chinese vehicles could negatively impact the domestic market. Tensions have also risen, as China recently imposed heavy tariffs on Canadian canola in response to Canada's tariffs on its EVs.