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Ottawa’s Tailpipe Plan Draws Fire as Canada Rewrites Car Emissions Rules

The move could pull Canada away from U.S. policy, reshaping which cars are built and sold here.

Overview

  • Federal officials are drafting replacement tailpipe standards due this summer that target about 74 grams of greenhouse gases per mile by 2035 and project roughly 75% electric-vehicle sales by then.
  • Auto groups for Ontario-based makers say the targets outrun buyer demand and warn tougher Canadian rules than in the U.S. could hurt local plants, a concern Ontario’s budget echoed with warnings about higher compliance costs and investment risk.
  • Environmental groups want strong limits to keep pace with global EV growth and argue the plan may still be too weak to hit the government’s own EV share, citing analysis that a limit near 40 grams per mile would be needed.
  • A new CanadaChina deal allows large volumes of Chinese-built EVs to enter each year at a 6.1% tariff, with import permits opened this month under a first-come system and an affordability price floor delayed until 2027.
  • Canada makes very few EVs today and Ottawa’s revived C$5,000 rebate applies mainly to models under C$50,000, with China-built vehicles excluded, which could shape prices, choices, and where companies ship inventory.