The Canadian government will delay a requirement that automakers meet minimum electric-vehicle (EV) sales levels in 2026, an official familiar with the matter said Friday.
The official, who spoke on condition of anonymity because they were not authorized to speak publicly ahead of an announcement, said the postponement comes as automakers and parts suppliers cope with trade disruptions linked to tariffs imposed by the United States. The announcement is expected later Friday from Mark Carney, the official said.
The mandate was part of a policy set under the Trudeau government that would have required 20% of passenger vehicles sold in Canada to be zero-emission vehicles by 2026. Government officials and industry representatives in recent weeks have signaled concern about the effect of U.S. trade measures and related supply-chain strains on manufacturers’ ability to meet the target.
Removing or delaying the requirement is intended to give automakers additional time to adapt production and supply arrangements while Ottawa prepares targeted assistance for sectors most affected by the tariffs, the official said. The measures to be announced are expected to include supports designed for workers and businesses in the automotive and parts industries.
U.S. tariffs announced earlier this year have disrupted cross-border trade that is deeply integrated between Canada and the United States, a key market for Canadian-made vehicles and components. Industry groups have said that sudden changes in trade policy can complicate long-term investments in new technologies and retooling necessary to ramp up EV output.
The move represents a shift in timing for Canada’s climate-linked auto policy but does not signal an abandonment of longer-term decarbonization goals, according to government briefings and public statements from officials in recent months. Federal leaders have repeatedly cited ambitions to reduce transportation-sector emissions while maintaining economic competitiveness.
Automakers have been navigating multiple pressures, including global supply-chain bottlenecks, semiconductor shortages in recent years, rising raw material costs and now higher trade barriers with the country’s largest trading partner. Those pressures have influenced production schedules and vehicle availability, factors that policymakers say underlie the decision to delay the sales requirement.
The official’s account was provided to news organizations ahead of the formal announcement and reflects Ottawa’s effort to balance climate objectives with immediate economic and employment concerns in auto-dependent regions. Additional details on the duration of the delay, any revised sales targets and the scope of the worker and business supports were not immediately available.
The expected announcement follows intensive consultations between federal officials and industry representatives. Observers said how the government structures the support measures and whether a new timeline for EV adoption will be set will be critical for automakers planning future investments in electrified vehicle production in Canada.