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 a number of issues occurred.
Trump gained 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 patrons ready on the sidelines for incentives to be reinstated (Quebec has since performed so).
Seeing alternative, sure members of Canada’s auto foyer are suggesting that Canada ought to comply with the U.S.’s U-turn on EVs, particularly by repealing Canada’s EV availability commonplace, a coverage requiring automakers to produce extra EVs to Canadians.
Instantly, the electrical automobile has change into a litmus check for whether or not we’re nonetheless America’s buddy — or able to be a extra international Canada.
Frankly, the selection couldn’t be clearer: align our ambitions with the broader world — the place one-in-four vehicles bought globally this yr is projected to be electrical — or comply with 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 business, making use of tariffs to the metal, aluminum and auto components it depends on. Mixed along 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 gentle of tariffs and America’s commerce struggle however, in sharp distinction with Trump, determined to maintain them. Consequently, drivers have entry to extra inexpensive EVs, and the EU is inside placing distance of its 2030 local weather goal. It’s the same story within the U.Okay., the place carmakers at the moment are on monitor to assembly EV targets, regardless of claiming they couldn’t presumably achieve this.
Canada has quite a lot of instruments to make sure related success, equivalent to reintroducing rebates (one thing the U.Okay. simply did), probably retooling the EV availability commonplace, investing in public charging with extra focus placed on serving to residence dwellers, and, sure, reducing the boundaries confronted by Chinese language and European carmakers.
Certainly, many Canadians are questioning why we must always preserve in place a 100 per cent tariff on inexpensive Chinese language EVs, with a latest survey by Abacus Knowledge for Clear Power Canada exhibiting that four-in-five Canadians would like a a lot decrease tariff or no tariff in any respect.
Chinese language EVs usually are 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 stage the enjoying subject for home producers, are sometimes nonetheless tariffed — simply not at 100 per cent. There may be early proof that the mere presence of Chinese language EVs improves native market situations and shopper adoption.
Finally, we should ask what’s greatest for Canada.
How about inexpensive 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 averted untimely deaths, in line with one latest examine?
And what about Canada’s canola, seafood, and pork industries, which have change into collateral harm as a goal of Chinese language retaliation over our U.S.-aligned tariff? Or higher but, Canada’s monumental crucial minerals alternative, underpinned by the transition to scrub power and particularly EVs?
Put one other manner, 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.
