July 2,2025
RED FM News Desk
Prime Minister Mark Carney met with top automotive industry executives on Wednesday morning to discuss U.S. tariffs and strategies to shield Canada’s supply chains from the ongoing trade conflict with the United States.
According to the Prime Minister’s Office, Carney was joined by the CEOs of Ford Canada, Stellantis Canada, and GM Canada, along with Brian Kingston of the Canadian Vehicle Manufacturers’ Association.
A brief statement from the PMO said the meeting focused on “the importance of strengthening a domestic, made-in-Canada supply chain and diversifying Canada’s trade partnerships.”
U.S. President Donald Trump has repeatedly stated that the U.S. doesn’t need Canadian-made vehicles and has pushed for auto production to be fully relocated to American soil. The U.S. currently imposes a 25% tariff on vehicles manufactured in Canada, though parts built in the U.S. are exempt due to the deeply integrated nature of the North American auto supply chain.
David Adams, president and CEO of the Global Automakers of Canada — representing 26 European and Asian car brands including Toyota and Honda — welcomed the meeting. “It’s good and constructive for the Prime Minister to engage with Detroit-based automakers,” Adams said. “We’re also hopeful to meet with him ourselves.”
One pressing concern for automakers is the federal government’s zero-emission vehicle (ZEV) mandate, set to take effect next year. The mandate has faced criticism in Parliament, particularly from Conservative MPs.
Canadian auto manufacturers have urged the government to roll back the policy. Despite incentives, electric vehicles (EVs) remain pricier than their gas-powered counterparts. EV sales dipped after the federal $5,000 rebate program ran out of funds. From January to March 2025, ZEVs made up just 8.11% of new vehicle sales — down from 16.5% in the final quarter of 2024, according to Statistics Canada. April 2025 figures show a further drop to 7.53%.
Environment Minister Julie Dabrusin confirmed last month that the government is working on a new EV rebate program but hasn’t decided whether to reinstate the previous plan or introduce a new one.
The federal ZEV sales mandate requires that 20% of all new light-duty vehicles sold in 2026 be zero-emission, rising annually to reach 100% by 2035. “There’s no realistic way manufacturers can hit the 2026 target,” said Adams. “My impression of the Prime Minister is that he’s pragmatic. I believe he’d be open to working with industry to remove costly and problematic barriers so we can focus on the larger issue — our trade relationship with the U.S.”
Trade negotiations between Canada and the U.S. have resumed after being stalled by Canada’s proposed digital services tax on multinational tech giants — a plan the Carney government dropped on Sunday.
Carney has said he wants a new Canada-U.S. trade deal finalized by July 21. If that deadline isn’t met, he warned Canada will escalate its trade countermeasures.
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