Subsidies for electric cars. Canada will spend billions to cut itself off from the US

2026-02-05 20:14
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2026-02-05 20:14
The Canadian government is introducing subsidies for people buying new electric cars, Prime Minister Mark Carney announced on Thursday. It's part of a strategy to reduce dependence on the U.S. and help Canadians switch more quickly to electric cars.


“Canada will introduce a new, more ambitious and sovereign pathway to reducing emissions,” Carney said.
Subsidies in the total amount of CAD 2.3 billion (CAD 1 is USD 0.73) are introduced for five years, from February 26 this year; will apply to new cars purchased by both individuals and companies. In 2026, subsidies will amount to PLN 5,000. Canadian dollars for an electric car and 2.5 thousand dollars for a hybrid car, and from 2027 they will start to decrease and in the last year of the program, 2030, they will amount to PLN 2,000. and 1 thousand dollars.
Ambitious sales goals and infrastructure development
The Canadian government estimates that the subsidies will enable cheaper purchases of 840,000. electric cars within five years, a in 2035, electric cars are to constitute 75 percent. new cars sold in Canada. At the same time, the government announces support in the amount of CAD 1.5 billion for the construction of car charging stations. Carney emphasized that charging electric cars should be “as easy as refueling your car.”
Purchase subsidies can only be applied to cars manufactured in Canada and in countries with which Canada has free trade agreements.
In January, during his stay in China, the Prime Minister of Canada signed an agreement which, among other things, allows annual import of 49 thousand. electric cars from this country with a preferential customs tariff, half of these imports are cheap cars, with a price below PLN 35,000. Canadian dollars ($25.5 thousand). According to expert estimates, these cars may be available in Canada as early as March. There is an ongoing discussion in the Canadian media about the possibility of Chinese companies starting production in Canada.
The end of the Trudeau era – a new emissions strategy
Thursday's decision is a departure from the policy of former Prime Minister Justin Trudeau's government, which introduced required electric car sales targets as a way to reduce emissions. For 2026, the goal was to sell at least 20 percent. electric cars. This program was suspended last September.
The new form of support for car sales is accompanied by stricter emission limits for new car models in 2027–2032.
In addition, C$3.1 billion in government funds is to be allocated to support the search for new markets for Canadian producers.
Protecting Canadian industry from US pressure
The government's goal is a strategy for the automotive sector to protect this industry in Canada due to US President Donald Trump's pressure on car manufacturers to move production to the US. Just last Friday, General Motors laid off 1,200 workers at its plant in Oshawa, Ontario. The Canadian government wants GM and another company, Stellantis, to return subsidies that American manufacturers received as support from Ottawa. Talks with Stellantis have been ongoing since November last year, and the Canadian government has allocated over C$1 billion to help modernize the Stallantis plant in Brampton. GM received C$260 million in support.
In the coming weeks, the government will present a new strategy for electricity production and distribution, Carney said. The transmission capacity of the Canadian energy grid is to be doubled, supplies are to be more reliable and electricity is to be cheaper.
From Toronto Anna Lach (PAP)
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