September 5, 2025
RED FM news Desk
Prime Minister Mark Carney has waived the Electric Vehicle (EV) mandate for 2026, a key part of a new strategy to provide relief to the Canadian auto sector amid a trade war. Carney also announced to launch an immediate 60-day review to reduce costs.
The EV mandate, which previously required car manufacturers to ensure a certain percentage of their vehicles were electric, was a central component of the previous government’s climate policy. This decision is part of a broader package that includes new “Buy Canadian” rules for government procurement, a reskilling program for affected workers, and financial support for small businesses.
Carney on Friday announced a series of new, strategic measures for workers and businesses in those sectors most impacted by U.S. tariffs and trade disruptions. The prime minister’s new “Buy Canadian” strategy will ensure that the federal government prioritizes local suppliers. This initiative, Carney said, is designed to boost domestic demand and help Canadian businesses and workers adapt to new economic challenges.
The government’s plan also includes a reskilling program for up to 50,000 workers affected by tariffs and aims to make Employment Insurance more flexible. For small and medium-sized enterprises (SMEs), the loan limit through the Business Development Bank of Canada (BDC) will be increased to $5 million.
In addition to the auto sector, the announcement included a $370 million relief package for canola farmers, who are dealing with a 75.8% tariff from China.
“The government will introduce a new biofuel production incentive, with over $370 million for domestic producers to address immediate competitiveness challenges, amend Clean Fuel Regulations to support the domestic biofuels industry, temporarily increase the Advance Payments Program interest-free limit to $500,000 for canola advances, and provide increased funding for the AgriMarketing Program to support diversification into new markets of agricultural products,” he said.
The government will introduce a new policy to ensure the federal government buys from Canadian suppliers, require local content when domestic suppliers are unavailable, extend this approach to all federal funding streams and Crown corporations, and provide a roadmap for provinces and municipalities to apply similar standards to their own procurement.
The government will expand support to SMEs to $1 billion over three years, with flexible terms, and increase new non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors, including agricultural and seafood.
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