Global trade is evolving rapidly, reshaping long-standing economic relationships and creating new challenges for industries and workers. With more than 90% of Canadian-made vehicles and 60% of auto parts exported to the United States, Canada’s auto sector, and it’s 500,000 workers, is especially vulnerable. To secure long-term resilience, our government has introduced a new comprehensive Auto Strategy built around five core elements that will strengthen competitiveness, support workers, and position Canada as a global leader in electric vehicles (EVs).
The first part focuses on accelerating investment in Canadian auto manufacturing. Canada will deploy $3 billion from the Strategic Response Fund and up to $100 million through the Regional Tariff Response Initiative to help automakers adapt, expand, and diversify into new markets. These investments will go together with reduced corporate tax rates for zero-emission technology manufacturers, encouraging companies to invest in clean technologies and EV production.
The second element involves rationalizing emissions reduction policies. Our government will introduce stronger greenhouse gas standards that chart a path toward 75% EV sales by 2035 and 90% by 2040. With these outcome-driven standards in place, the Electric Vehicle Availability Standard will be repealed, giving manufacturers greater flexibility while ensuring meaningful emissions reductions.
Third, the strategy aims to strengthen domestic EV demand. A new five-year, $2.3 billion EV Affordability Program will provide purchase and lease incentives for Canadians and businesses. At the same $1.5 billion from the Canada Infrastructure Bank will expand charging and hydrogen refuelling networks nationwide.
The fourth pillar will modernize Canada’s trade and competitiveness framework by enhancing the automotive remission system, maintaining counter-tariffs on U.S. imports, and deepening partnerships with key markets such as Korea and China to diversify exports and attract investment. Our government will ensure a level playing field for Canadian automotive manufacturers in the domestic market to spur investment and development.
Finally, the fifth element ensures workers are supported through the transition. A new Work-Sharing grant, a national workforce alliance, and $570 million in training and reskilling supports will help up to 66,000 workers, including those affected by sectoral shifts to prepare for the jobs of the future.
Together, these five pillars form a bold industrial strategy that will build a stronger, more resilient and more independent Canadian economy. The choices we make now will shape the future of Canada’s auto industry for decades to come. By protecting this vital sector, supporting workers and incentivizing automakers to build here at home. That’s how we Build Canada Strong.