“The auto sector is saying, ‘If we’re going to stay in Canada, you must get rid of this EV mandate,’” a Canadian government official with direct knowledge of Canada’s negotiating strategy told Politico.
At the bargaining table with Trump, there is concern that Canada’s auto sector is out of sync with the U.S., said the official with knowledge of the negotiations.
“We do not have a trade problem. We have a policy alignment problem from the perspective of the Trump administration,” said the official.
After recently scrapping a controversial Digital Services Tax that would have hit U.S. tech giants such as Google, Amazon and Netflix, Carney’s government is now under pressure from automakers and Trump himself to ditch Canada’s EV mandate.