TORONTO— ADAM THORN, clean growth director at the Pembina Institute, made the following statement in response to the latest U.S. tariffs on Canadian goods:
“Recent U.S. trade actions are another reminder that Canada's economy and auto sector are exposed to decisions made beyond our borders. They reinforce the need for policies that support Canadian consumers and help businesses operating in Canada compete.
“The auto sector has a direct impact on Canadians, supporting hundreds of thousands of jobs and shaping the vehicles available to consumers. Around the world, automakers are investing in electric vehicles (EVs) and supply chains that support them. Canada needs policies that help ensure Canadians can benefit from this transition through more choice and more affordable options.
“Canada should not respond to external pressure by stepping back from policies that support consumers. A strong and predictable vehicle emissions standard, combined with greater access to affordable EVs, including low-cost Chinese models, can help bring more choice and lower costs to Canadians while ensuring decisions about Canada’s automotive future are based on our own economic interests.
“We cannot control decisions made in Washington. We can control whether businesses have the clarity they need to invest here. A strong and predictable vehicle emissions standard in Canada can provide that clarity. A clear and ambitious standard would give automakers, charging companies and electricity providers a clear understanding of where the market is heading. That helps companies plan, invest and bring more options to Canadian consumers.
“Automakers respond when they compete for consumers. That's why policies that support competition and connect Canadians to the global vehicle market can help deliver more choice and affordability. When Canadians have access to more models and more affordable options it creates the conditions for investment and a more competitive industry that is better positioned to withstand external shocks. A strong domestic market for EVs will help build a more resilient auto sector.
“The global auto industry is changing quickly. Countries that build strong markets for EVs will be better positioned to attract investment and compete. Transportation will be one of the largest sources of new electricity demand in the coming decades, and a predictable EV market will help utilities, charging providers and businesses support the investments needed to build Canada's electrified economy.
“The federal government said the proposed vehicle emissions standard would be released in June. It is now the end of July, and Canadians and businesses are still waiting for clarity. Canada should move quickly to deliver a strong, predictable standard that supports consumer choice, affordability and a competitive auto sector.”
Quick Facts
- Global internal combustion engine vehicles peaked in 2017. Since then, EV sales have accelerated, with EVs projected to reach 23 million in 2026, accounting for nearly 30% of new car sales worldwide.
- China is approaching 60% EV market share, while Europe is expected to reach one in three new vehicle sales in 2026.
- A strong vehicle emission standard with a 40 g/mile (25 g/km) target is needed to support Canada’s target of 75% EV sales by 2035 and 90% by 2040.
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Contact
Lejla Latifovic
Senior Communications Lead, Pembina Institute
819-639-4185
Background
Backgrounder: Getting the Vehicle Emissions Standard Right
Blog: Canada risks being left behind if it fails to align with the global auto market
