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Canada Unveils Auto Industry Plan in Latest Pivot Away From US (bbc.com) 303

Posted by msmash from the tussle-continues dept.
Canadian Prime Minister Mark Carney has announced a sweeping plan to shore up the country's auto industry and accelerate its electric vehicle transition, the latest in a series of moves to reduce Canada's deep economic dependence on the United States as American tariffs continue to batter the sector.

The plan includes financial incentives for carmakers to invest in Canada, a new tariff credit scheme for manufacturers like General Motors and Toyota, and the reintroduction of EV buyer rebates. Canada will also enact stricter vehicle emissions standards and has set a goal of EVs comprising 90% of car sales by 2040. Carney at the same time scrapped a 2023 EV sales mandate introduced by former PM Justin Trudeau that automakers had called too costly.

The announcements follow a deal last month with China to ease tariffs on Chinese EVs and an agreement with South Korea to encourage Korean car manufacturing in Canada. Roughly 90% of Canadian-made vehicles are exported to the US, and thousands of auto workers have lost their jobs since Trump imposed 25% tariffs on Canadian cars and parts last year.
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Canada Unveils Auto Industry Plan in Latest Pivot Away From US More

Canada Unveils Auto Industry Plan in Latest Pivot Away From US

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  • I would expect Canada to have the same "large country" problem we do and go more towards hybrids. They also have cheap hydro as well which helps EV adoption.

    • Re: (Score:3)

      by sinij ( 911942 )
      Most of the Canadian population is concentrated near the border with US. Outside of big cities, the rest of Canada is endless two-lane highway, sometimes not even paved, with absolutely nothing but woods and black flies. Think Alaska and you will get pretty accurate picture.

      • Re:From coast to coast. (Score:5, Interesting)

        by froggyjojodaddy ( 5025059 ) on Friday February 06, 2026 @09:03AM (#65972378)
        I get the high cost of expanding into the great wilderness for housing etc. but the fact everyone is jammed in so tight into cities is crazy considering just how much land mass there is. You only have to drive 20 minutes out of the Toronto core to realize there actually is a bunch of space but they're still cramming people into 600 ft apartments in Toronto and making them pay $700/month in condo fees and $2,500 in rent for the privilege.

        Even the drive from London to Windsor is more reminiscent of a post-apocalyptic barren wasteland than a 1st world country. There are definitely farms which should be protected but there's also SO much crown land that no person has set foot upon that could be better used to build houses for people

        • Re: (Score:2)

          by sinij ( 911942 )
          It is crazy. This is what happens when planners prevent build out and neglect building infrastructure. Ontario essentially has one major highway going through it and unsurprisingly it is a disaster for both commuting and transportation around population centers. If you look at US vs. Canada road map, it is clear that Canada neglected building out highway infrastructure.

        • Re:From coast to coast. (Score:5, Insightful)

          by MightyMartian ( 840721 ) on Friday February 06, 2026 @10:16AM (#65972570) Journal

          Sprawl is incredibly expensive to service. Suburbs are probably the most inefficient way to deal with housing ever invented, between having to deliver utilities, expand fire protection and policing, and just plain road maintenance, there's a reason that we should eschew suburbs and sprawl in favor of density.

          • Re: (Score:2, Insightful)

            by cayenne8 ( 626475 )

            Sprawl is incredibly expensive to service. Suburbs are probably the most inefficient way to deal with housing ever invented, between having to deliver utilities, expand fire protection and policing, and just plain road maintenance, there's a reason that we should eschew suburbs and sprawl in favor of density.

            Not me...I gave up sharing walls with other people when I quit being a broke college student having to live in apartments.

            I like having a nice big back yard fenced in for my dog to run around in, to

          • It would seem that after a suburb exceeds a certain population level, it would become its own city, producing its own utilities, fire safety and policing, as well as other civic amenities. The original city that it grew from - it needn't be eternally tied to that

      • But people still need to drive there. Who will put chargers where there is nothing but black flies?

        • People aren't stopping in the middle of nowhere to look at black flies. that's just the middle part between where they started and where they are going. Putting a charging station between two major areas is a great idea, regardless of how desolate the middle part is.

          • If you have a road going through a 400km area of nothingness and many EVs coming through there are going to have less than 400km range then you need a charger there somewhere. Or are we going to just abandon public routes because EVs? This will cut off entire towns and villages. There are many roads that are just on ice that go for hundreds of kilometers that are vital to communities.

          • The thing that I'd be worried about is that when you get to that EV charging station in the middle of nowhere, it's out of service and you're basically screwed.

            Maybe it got hit by a snow plow. Maybe it got vandalized by some anti EV luddites. Maybe the company who built it just can't afford to maintain it anymore. Either way, you're still screwed.

            • Well yes so now there needs to be two or three times the required chargers along the route.

            • And there ain't going to be any Internet for miles around either.

              • And there ain't going to be any Internet for miles around either.

                Ok I'm with ya on all the other comments and arguments, except this one.

                I grew up before there WAS an internet.....being without it is no big deal.

                Sure it makes life fun, but its no big deal to go without it for spans of time.

            • How does that argument not also apply to gas stations in the middle of nowhere?

              • Gas stations with snacks in the middle of nowhere are a much more profitable business and also require much less power than chargers in the middle of nowhere. So they are much more prevalent. Also if you know you are going into an area without gas you have the option of carrying some with you.

                • People have to be at EV chargers for 15+ minutes so it makes no sense to not put snacks at the hypothetical EV charger in the middle of nowhere.

                  • Well the reality of that involves a lot of math. The electricity price that people pay to charge needs to support the massive infrastructure to bring the electricity there plus manning the station and having an employee there in a place that is desolate. That could work, or it could make it prohibitavely expensive for most people to charge anyway.

    • "Cheapish" hydro, depending where you live and the time of day you're using electricity.

      It can be as high as $0.40 / kWh during the day and around $0.04 during the night. Which sounds amazing until you realize the Hydro company tacks on a BUNCH of surcharges, fees etc.

      For example, last month, I paid $135 in "Delivery" fees, $19 in "Regulatory" fees. That represents a fairly hefty percentage of my total bill. They might reduce the per kWh rate, but you can bet they'll make up for it in add-on fees.

    • Re:From coast to coast. (Score:5, Insightful)

      by Sique ( 173459 ) on Friday February 06, 2026 @09:01AM (#65972374) Homepage
      Norway has the same "large country" problem as Canada, and they are 96% EV. You can generate electricity everywhere. But you can't refine oil into gasoline everywhere.

      And no, don't tell me that Canada is much larger. That's not the "large country" problem. The large country problem means: if you are driving more than a day in the same direction, do you pass enough infrastructure for your mode of transport? And that's as valid for Norway as it is for Canada.

      • But how many EVs are away from the coast in Norway? As far as I understand it, most people live on the coast. Also I'm going to go out on a limb and say you can take trains around Norway if you are going somewhere an EV may be awkward.

        • Re: (Score:2)

          by Sique ( 173459 )
          Norway's cost is unlike coasts you might know. Norway's coast is basically a mountain diving into the sea. No beaches, no flat land, except at some spots around the mounds of rivers, and that's where the settlements are. Between two settlements along the coast, you either have a ferry, or a tunnel. Most of Norway's coast does not have a road at all, because there is not enough space, and the E6, which goes through most of Norway, does follow the coast only occasionally, but mostly follows valleys through th

        • This is relevant because people are uniformly distributed in Canada and Nunavut has the same population density as the Quebec Cityâ"Windsor Corridor...

          • There are way more people in Canada that are not within 4 hours from the US border. Millions. There are millions that live in cities not on the TransCanada highway where they put chargers. There are no trains here and taking an airplane has gotten rediculously expensive. I would prefer my mode of travel to be as reliable as possible with as little dependency on infrastructure as possible.

        • Re: (Score:2)

          by AmiMoJo ( 196126 )

          You can go anywhere in an EV in Norway. Why spend your life wondering what the answers to these questions are, when you can simply go on A Better Route Planner and see for yourself? Plug in any start and end point, and what car you have, and it will tell you charging you need to do.

          I did a quick check, with a cheap EV, the MS S5. You can get a brand new long range one for about 23k GBP including tax, or about $25k before tax. One end of Norway to the other, right up into the Arctic Circle, is no problem at

    • Around 85% of Canadians live in urban areas, and the average one-way commute time is around 27 minutes (and about 9km or about 5.6 miles). It's a bit bigger in larger cities like Vancouver or Toronto, but then again those cities have public transit, so many people can get by without having to drive a car, at least to work.

      Most people do not live 50 miles from the workplace, so an EV would be sufficient. With more Chinese imports about to appear, my next vehicle will almost certainly be an EV, and I'll keep

      • People buy a vehicle to serve all their purposes, not 90% of their purposes. Putting it another way, if the vehicle is going to be useless to me 10% of the time, it had better be 10% cheaper.

        • I think you're overstating the situation in saying that EVs can't serve "people" in general for 10% of their driving needs, but that aside:

          It'll of course depend on the sort of car you're likely to buy, how long you keep that car, your mileage, fuel/electricity costs, etc., but for a lot of ways you can figure those numbers we're already in a world where the total cost of owning an EV is at least 10% less than an ICEV.

    • That sounds about right. Except maybe for people who don't drive anywhere except to their nearby pharmacy and grocery store

  • Only the first step (Score:5, Interesting)

    by gtall ( 79522 ) on Friday February 06, 2026 @08:39AM (#65972308)

    There is a news story, probably NYT or Politico or BBC (I cannot recall where exactly) that the rejection of the U.S. from Canada is catching on with the rest of the world. There are apps in Europe that will tell you whether some company builds stuff with U.S. parts. Way to go, el Bunko. Are you tired of (*^(&^% winning yet?

    • Re:Only the first step (Score:5, Insightful)

      by jenningsthecat ( 1525947 ) on Friday February 06, 2026 @05:33PM (#65973596)

      There is a news story, probably NYT or Politico or BBC (I cannot recall where exactly) that the rejection of the U.S. from Canada is catching on with the rest of the world. There are apps in Europe that will tell you whether some company builds stuff with U.S. parts. Way to go, el Bunko. Are you tired of (*^(&^% winning yet?

      Because you're pointing out that a large part of the world is distancing themselves from the US - and they may or may not be following our lead - this seems like a good place to address something TFS says: "... reduce Canada's deep economic dependence on the United States as American tariffs continue to batter the sector".

      What I want Americans to understand - and a surprising number don't get this - is that the majority of Canadians' rejection of the US isn't about the tariffs.

      We Canadians are sick and tired of US media saying - and US citizens believing - that our unwillingness to buy US goods and visit the US is because of tariffs and exchange rates. Sure, those things reduce tourist traffic and purchases of American goods a bit, simply because of household budgets. But the BIG push-back - product boycotts and a huge reduction in tourist travel to the US - is because of the Orange Shitgibbon making 51st state threats, calling our Prime Minister "Governor", and turning ICE into an openly violent, irrational, unhinged threat to human life.

      Sure, for economic reasons it's necessary for Canada to change its plans, forge new allegiances, and strive for a future in which the US plays a rapidly declining role in our economy. But the umbrage and fear we feel are all about threats and disrespect. And I dare say that the same evaluation we Canadians have made applies to a multitude of other countries. That's the main reason for us all finding new trade and cultural partners and turning our backs on the States.

      This is a case where, to a large extent, "it's NOT the economy, stupid"! Under Trump, America has already effected regime change in Venezuela, bombed a bunch of innocent fishermen, murdered innocent US citizens publicly and unapologetically, shipped innocent people to concentration camps, threatened other countries, and on and on and on and on.

      The terms "friend", "reliable partner", "safe tourist destination", etc, no longer apply to America. Given that, trade and tariff issues are a mere blip. The big factor is America's transition - in the space of a single year - from free and fair country into full-on Fascist dictatorship. Yes, the roots of the descent go back at least decades; but this past 12 months has seen the country fall under the sway of a dangerous toddler tyrant.

      This toothpaste isn't going back into the tube. The old way of doing things has been torn down and burned, and its ashes have been pissed on. This isn't a blip, nor an "Oops! My bad". This is one of those historic moments when the world changed.

  • Still continues to give US-based auto manufacturers a bunch of tax payer money...

    I guess the Canadian Gov't still hasn't learned that you can give GM, Ford etc. all the incentives and money you want, but they will still close Canadian factories and move production back to the US at their whim. Also, I wouldn't hold your breath on any increase in EV chargers. Other than Tesla whose supercharging network seems to be growing at lightning pace, all past attempts to throw Gov't money at increasing chargers

  • 2040 objective (Score:3, Insightful)

    by fred6666 ( 4718031 ) on Friday February 06, 2026 @09:06AM (#65972392)

    2026: Announce objective of 90% EV by 2040
    2027-2035: Do nothing
    2036: Announce that the 2040 objective of 90% is not realistic and must be scrapped. But all current politicians involved are going to be out of office/retired.

    That's basically what they did with the 2035 objective.
    How about they set a realistic objective for the next 4 years (one mandate)? It could be like having 15% EV by 2030.

  • Pivot away from US ? (Score:5, Insightful)

    by 4im ( 181450 ) on Friday February 06, 2026 @09:15AM (#65972414)

    No, it is clearly the US that are shutting the doors. Very obviously, the Trump administration wants to go it alone - either others accept extortionous terms (why should they?) or nothing. Forget a fair deal. Ok, then don't be surprised if the rest of the world gives the US the middle finger. All the US has going for themselves is momentum, and that's quickly drying up. Trust is long gone, good luck to get it back within our lifetimes.

    Excellent job agent Krasnov is doing for his master.

    • Re: (Score:2)

      by Targon ( 17348 )

      That's what Russia does, and the Putin puppet named Donald Trump is following orders very well.

  • Turn Around is Fair Play (Score:4, Interesting)

    by Spinlock_1977 ( 777598 ) <Spinlock_1977.yahoo@com> on Friday February 06, 2026 @09:46AM (#65972514) Journal

    This is brilliant. It's just what the Chinese did with Tesla. 1) Invite them in, 2) Learn how to make their cars 3) Use that knowledge to launch local versions. China now makes arguably better electric cars than Tesla, and it looks like the Canadians are going to learn how to do it too. They certainly have the raw materials for it.

  • Where does Canada think it will sell these EVs? (Score:3, Insightful)

    by HighOrbit ( 631451 ) on Friday February 06, 2026 @09:56AM (#65972524)
    If the US market is not open, then where does Canada think it will sell these EVs? Their internal market is limited (40M population - about the size of California). EU will not take imports of automobiles (but will happily sell you their own Audis or Mercedes). Korea and Japan do not accept foreign autos. The rest of the world is flooded with cheap BYD EVs. Beyond Carney's bravado and posturing of standing up to Trump, Canada's better interest is to reconcile with the USA.

    • It's actually pretty obvious that is Trump's whole strategy and the only way to 'reconcile' with him is to give him exactly what he wants. He is negotiating based on the weight of tariffs that probably isn't even legal. Any country that is 'cooperating' with him is just trying to appease him and bide their time.

      Canada needs to at least wait for the tariff decision from the supreme Court before doing anything.

      • Re: (Score:2)

        by jvkjvk ( 102057 )

        >Canada needs to at least wait for the tariff decision from the supreme Court before doing anything.

        The tariff decision from the SC won't mean anything, because they have already found other justifications for the tariffs. So don't expect tariffs to be discontinued even if he loses.

    • Re: Where does Canada think it will sell these EVs (Score:4, Insightful)

      by i_ate_god ( 899684 ) on Friday February 06, 2026 @10:46AM (#65972664)

      Considering that the US attacked Canada, why is it Canada's job to reconcile?

      All this is just the consequences of American actions.

    • Re: (Score:2)

      by ddtmm ( 549094 )
      The problem with giving in to the US is that it ends up being just one more step towards giving in completely. That’s pretty much never going to happen.

    • Trump's physical and mental health degrades every day. If he doesn't drop dead of a stroke in a few months he'll be impeached and removed from office after the midterms. The best strategy is to stand up to him now and delay making any agreements with the USA until his replacement takes over.

      • Re:Where does Canada think it will sell these EVs? (Score:4, Interesting)

        by bussdriver ( 620565 ) on Friday February 06, 2026 @03:16PM (#65973328)

        He will never be removed. Country is too forgone for that. Foolish dems will give up impeaching him every week; which must be done simply because the public is too stupid to register fire without a lot of smoke.
        Dementia Donald knows...or forgets... and repeats lies constantly until half the country believes it. The truth needs repeating just to counter the gas lighting.

        Americans are so stupid, if we didn't have videos of protester executions from multiple angles on constant repeat they'd forget what their own eyes saw. Once Trump gets youtube in line and tiktok ups the censorship (already begun) those videos will be out of most peoples view. Plus they are currently SLOW-- when they learn, we'll have so much AI slop of events that people will have a hard time finding let alone verifying reality. I'm surprised by the 2nd execution they didn't have the man holding up a gun from 2 angles within a week.

  • It's USMCA renewal time (Score:5, Insightful)

    by RobinH ( 124750 ) on Friday February 06, 2026 @11:25AM (#65972788) Homepage
    Sorry to throw some cold water on all the emotional comments in this story, but just remember that the North American trade agreement (USMCA/CUSMA) is up for renewal this year, and it's standard practice before any negotiation for both sides to try to position themselves on more stable footing. When you want to negotiate, you need to go into it with a list of things you can negotiate away in order to get what you want. Every (smart) negotiating team from every country does this. Canada has been making small but significant agreements with other countries both as a hedge against the US going its own way, and also so that it has something to offer the US in exchange for a continued USMCA agreement. "Sure, we'll buy the F-35's and put more barriers in place for Chinese EVs if you agree to re-approve CUSMA for 4 years." And if the US decides to walk away, then Canada still has some other trading options it can fall back on. It's just a pragmatic thing to do.

    • NAFTA is pointless exercise in futility (Score:4, Interesting)

      by bussdriver ( 620565 ) on Friday February 06, 2026 @03:10PM (#65973314)

      They barely changed anything in NAFTA gave Dementia Donald his new name and credit; adding some stupid BS and sneaked in a couple useful things. Then Dementia Donald breaks it on a whim.

      There is no real deal possible. Somebody puts out a TV ad and he's tossing all agreements for demands of censorship. Make any deal with China and he's demanding to run your foreign policy.

      Simple name the thing after him; put in most everything he wants then stall and violate the agreement the whole time. Hell, put a 1 year starting delay into it. Like China buying soybeans, do almost nothing then when the deadline comes don't do it.

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