Amid the rapid changes in global trade relations under the Trump administration, Prime Minister Mark Carney announced a package of measures to strengthen the Canadian economy on September 5. These measures will support industries most affected by US tariffs and trade issues.
“We cannot control what other countries do, but we can control what we feed ourselves and what we build,” Prime Minister Carney said at a press conference, adding that Canada will build its strength in the face of global uncertainty.
One of these is the suspension of the electric vehicle (EV) mandate, which requires that 20% of new cars sold in Canada must be zero-emission vehicles (vehicles with zero greenhouse gas emissions) by 2026, 60% by 2030, and 100% by 2035. However, in response to requests from the auto industry, the government has waived the mandate for fiscal year 2026 and will review the policy for 60 days.
Other measures announced include a “reskilling package” that extends and flexibly extends employment insurance benefits and helps 50,000 workers update their skills through digital vocational training programs; a “Buy Canada” policy that requires the federal government to use Canadian suppliers and provides a roadmap for provinces and local governments to do the same; and an expansion of lending by the Industrial Bank of Canada.
The government has positioned this series of measures as part of “building a new industrial strategy to adapt to the times,” stating that “we will move away from an economy dependent on specific trading partners and transform into an economy resilient to global shocks, with strong Canadian industry and diverse trading partners.”