There are few Canadian markets extra built-in with the U.S. than autos. And never simply the vehicles we construct in Ontario, however the ones we drive throughout this nation.
We depend on U.S. security requirements that successfully decide which vehicles find yourself on dealership heaps, align our tailpipe emission requirements and when the U.S. beneath Biden erected a 100 per cent tariff wall on Chinese language electrical autos (EVs), did Canada look to Europe’s a lot decrease tariff or the U.Okay.’s lack of 1? No, we put up a 100 per cent tariff wall too.
After which just a few issues occurred.
Trump received the election and promised to slash authorities investments in EV charging and manufacturing, cancel shopper EV tax credit and weaken emission requirements (all guarantees he’s since fulfilled). U.S. automakers have eased their EV ambitions accordingly.
Concurrently, Canadian EV gross sales have declined in 2025 after funding ran out for EV rebates federally and in two key provinces, B.C. in Quebec, leaving consumers ready on the sidelines for incentives to be reinstated (Quebec has since achieved so).
Seeing alternative, sure members of Canada’s auto foyer are suggesting that Canada ought to observe the U.S.’s U-turn on EVs, particularly by repealing Canada’s EV availability customary, a coverage requiring automakers to produce extra EVs to Canadians.
All of a sudden, the electrical automotive has grow to be a litmus take a look at for whether or not we’re nonetheless America’s buddy — or able to be a extra world Canada.
Frankly, the selection couldn’t be clearer: align our ambitions with the broader world — the place one-in-four vehicles offered globally this 12 months is projected to be electrical — or observe Trump’s retreat, additional fortifying an uncompetitive, fossil-fuel-powered North America.
Certainly, Trump is imposing inexplicable self-harm on America’s personal auto manufacturing trade, making use of tariffs to the metal, aluminum and auto elements it depends on. Mixed together with his efforts to roll again gasoline effectivity requirements, Trump is successfully forcing Individuals to each produce and drive much less environment friendly autos — and pay extra to take action.
Like Canada, the EU revisited its EV necessities in mild of tariffs and America’s commerce battle however, in sharp distinction with Trump, determined to maintain them. Consequently, drivers have entry to extra reasonably priced EVs, and the EU is inside placing distance of its 2030 local weather goal. It’s an identical story within the U.Okay., the place carmakers are actually on monitor to assembly EV targets, regardless of claiming they couldn’t presumably achieve this.
Canada has quite a few instruments to make sure comparable success, corresponding to reintroducing rebates (one thing the U.Okay. simply did), doubtlessly retooling the EV availability customary, investing in public charging with extra focus placed on serving to residence dwellers, and, sure, decreasing the obstacles confronted by Chinese language and European carmakers.
Certainly, many Canadians are questioning why we should always maintain in place a 100 per cent tariff on reasonably priced Chinese language EVs, with a current survey by Abacus Information for Clear Vitality Canada exhibiting that four-in-five Canadians would like a a lot decrease tariff or no tariff in any respect.
Chinese language EVs are usually not barbarians on the gate, solely a drawbridge away from decimating the competitors. That merely hasn’t occurred in different superior nations, the place Chinese language EVs usually make up lower than 10 per cent of the EV market. BYDs are constructed and priced for the international locations they promote in and, to degree the taking part in subject for home producers, are sometimes nonetheless tariffed — simply not at 100 per cent. There’s early proof that the mere presence of Chinese language EVs improves native market situations and shopper adoption.
Finally, we should ask what’s finest for Canada.
How about reasonably priced EVs that can save drivers hundreds on gasoline yearly? Or higher air high quality, much less pressure on our well being care system and 11,000 prevented untimely deaths, based on one current research?
And what about Canada’s canola, seafood, and pork industries, which have grow to be collateral injury as a goal of Chinese language retaliation over our U.S.-aligned tariff? Or higher but, Canada’s huge crucial minerals alternative, underpinned by the transition to scrub power and particularly EVs?
Put one other approach, we’re not Individuals and we needn’t drive like them — or with them.
This publish was co-authored by Trevor Melanson and first appeared within the Toronto Star.
