Rewarding automakers for building in Canada
Giving Canadian-made EVs and plug-in hybrids an exemption on the $50,000 transaction cap is only one way Carney’s new strategy is looking to strengthen Canada’s domestic industrial sector.
“If the U.S., through the CUSMA review, insists on some form of auto tariffs, we’ll ensure that companies that sell vehicles in Canada are strongly incentivized to produce in Canada,” Carney said.
To do that, the prime minister said he will explore implementing a tradable credit system that would reward companies building in Canada by giving them credits.
Manufacturers that have earned credits by making cars in Canada can sell surplus credits to automakers that did not manufacture their cars here.
That move, according to a background document, would effectively monetize the investments automobile manufacturers make in Canadian production.
Before that credit system is rolled out, it will go out for public consultations.
