On February 5, Canadian Prime Minister Justin Trudeau is set to unveil a fresh batch of fuel efficiency standards for cars and trucks. This move will take the place of the prior electric vehicle mandate, which had drawn fierce pushback from the automotive sector. The updated plan is designed to safeguard automotive manufacturing jobs by enhancing market access for companies that manufacture vehicles in Canada.

After Trump slapped tariffs on foreign automobiles, thousands of automotive workers in Canada have either lost their jobs or are on the brink of unemployment. General Motors has scaled back production in Canada, and Stellantis, Chrysler's parent company, has also scrapped plans to reopen a factory near Toronto.

The previous regulations mandated that automakers hit a short - term sales target of at least 20% zero - emission vehicles, with an ambition for all new light - duty vehicles to go electric by 2035. Automakers took issue with these goals, contending that they were hard to meet and overly expensive. They claimed this would drive up vehicle prices and limit consumer options. In September of the previous year, Trudeau vowed to take another look at these rules.