Carney meets with car industry CEOs as U.S. trade talks continue
Prime Minister Mark Carney convened with top automotive sector CEOs on Wednesday to address the impact of U.S. tariffs and strategize on safeguarding Canadian supply chains amidst the ongoing trade war with the United States.
According to a spokesperson from the Prime Minister’s Office (PMO), Carney met with the CEOs of Ford Canada, Stellantis Canada, and GM Canada, as well as Brian Kingston from the Canadian Vehicle Manufacturers’ Association. The discussions centered around the necessity of developing a made-in-Canada supply chain and exploring opportunities to diversify trading partners.
The current U.S. administration, led by President Donald Trump, has been vocal about its preference for American-made vehicles and has imposed a 25 per cent tariff on Canadian-manufactured vehicles, with certain exemptions for components sourced from the U.S.
David Adams, the president and CEO of the Global Automakers of Canada, representing various European and Asian auto brands, including Toyota and Honda, expressed optimism about engaging with the prime minister on critical issues affecting the industry. One pressing concern highlighted by Adams is the impending zero-emission vehicle mandate set to come into effect next year, which has faced scrutiny from the Conservative Party in recent parliamentary sessions.
The automotive sector has called for the repeal of the EV mandate, citing its impracticality and the challenges it poses for manufacturers. Kingston emphasized the urgency of addressing this mandate during his meeting with Carney and later reiterated the industry’s stance on its removal.
Conservative MP Raquel Dancho echoed the industry’s sentiments, urging the government to reconsider the EV mandate to align with the industry’s needs and economic realities.
Notably, electric vehicle sales in Canada experienced a decline following the depletion of federal rebates earlier this year. Statistics Canada data revealed a drop in EV sales from the previous quarter, underscoring the challenges of promoting zero-emission vehicles in a competitive market.
Environment Minister Julie Dabrusin disclosed plans to reintroduce an EV rebate program to stimulate electric vehicle adoption. The government’s mandate requiring a percentage of new vehicles to be zero-emission by 2026 has faced skepticism from industry players like Adams, who argue that meeting these targets is unfeasible and could hinder trade relations with the U.S.
As negotiations between Canada and the U.S. resume, Carney aims to secure a new trade agreement by July 21, with potential trade countermeasures looming if the deadline is not met. The discussions with automotive CEOs underscore the importance of finding common ground to protect and enhance Canada’s automotive industry in the face of external challenges.
