Canada unveils auto industry plan in latest pivot away from US
Prime Minister Mark Carney has unveiled a plan to bolster Canada's car industry and support its electric vehicle transition, as the sector buckles under the weight of US tariffs.
The new initiatives, announced on Thursday, mark Canada's latest effort to reduce its reliance on the US, amid President Donald Trump's push for more domestic car production.
Carney's strategy includes financial incentives for carmakers to invest in Canada and the reintroduction of rebates for EVs.
Trump last year imposed a 25% tariff on Canadian cars and car parts. The levies were a shock to car production in Canada, where roughly 90% of vehicles are exported to the US.
Many US car companies have operations in Canada, set up under the terms of a longstanding free trade agreement, and supply chains are highly integrated.
The United States-Canada-Mexico (USMCA) free trade agreement is up for review this year. But the agreement's original purpose, of removing tariffs across North America, was no longer the current objective of the US administration, Carney said at a car plant in Toronto on Thursday. "Their approach has changed."
https://www.bbc.com/news/articles/cvgd2j80klmo