Canadian Prime Minister Mark Carney has announced a pause on a target for electric vehicle sales, while also pushing for a "Buy Canadian" policy. Both are seen as an effort to manage the impact of U.S. tariffs, as Canada's economy shows signs of weakening.

BBC News reports that Canadian automakers will no longer be required to ensure 20% of new car sales are electric by next year, Carney said on September 5, claiming the move will help the struggling sector manage U.S. tariffs. New rules will also prioritize Canadian-made goods for federal contracts, and include a fund to assist Canadian companies to develop new products.

Canada shed 66,000 jobs in August, pushing unemployment to 7.1%. U.S. President Donald Trump has imposed 25% tariffs on foreign vehicles — though manufacturers in Canada and Mexico have some exemptions — and 35% on goods imported from Canada.

"We cannot control what other nations do," Carney said. "We can control what we give ourselves — what we build for ourselves."

While the EV mandate from next year will be paused, the longer-term goals — 60% by 2030 and 100% by 2035 — will remain.

The mandate requiring the number of new zero-emission vehicles sold in Canada was put in place by Carney's predecessor Justin Trudeau in 2023.