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Sidhu Unveils Plan to Revamp Canada Auto Industry

The world is changing rapidly, fundamentally reshaping trade relationships and leaving economies, businesses, and workers under a cloud of uncertainty. Canada's automotive industry is on the frontline of this shift, with more than 90% of Canadian-made vehicles and 60% of Canadian-made auto parts currently exported to the U.S.

Today in Brampton, the Honourable Maninder Sidhu, Minister of International Trade and the Honourable Ruby Sahota, Secretary of State for Combatting Crime, highlighted how Canada's new auto strategy will strengthen domestic manufacturing, protect workers, and help Canadian auto companies compete and grow in global markets.

The government is focused on what we can control - implementing a new industrial strategy. Canada is transforming the economy from one that is reliant on a single trade partner to one that is more resilient to global shocks - a stronger, more sustainable, more independent economy built on the solid foundation of strong Canadian industries and bolstered by diverse international trade partners. In parallel, the government is launching a national electricity strategy to leverage our energy advantage to provide clean, affordable, and reliable power to Canadians.

These shifts present a unique opportunity to transform Canada's auto industry to be less reliant on the U.S. and gas-powered vehicles. To that end, the government has introduced a new auto strategy that rewards the production of made-in-Canada vehicles and harnesses our world-class capabilities in artificial intelligence and technology expertise to build the cars of the future. This is a strategy that positions Canada to become a global leader in electric vehicle (EV) production.

On February 5, the Prime Minister, Mark Carney, announced the following new measures:

The government will leverage our new and existing trade agreements - including the recent EV arrangement with China - to catalyse massive new investment in the sector, diversify Canada's auto export markets, and position Canada as a global leader in EVs. Canadian workers and industries are well equipped to seize this opportunity, and our government is making generational investments in critical minerals, including those essential for batteries, to secure our place in the world's most important supply chains.

The choices made now will shape the Canadian auto industry for decades to come. By protecting the industry and incentivising automakers to build here, Canada's workers and businesses can transform to compete and win in this new global environment.

These measures build on previously announced initiatives to help transform strategic Canadian industries, including steel and softwood lumber. Together, they form an ambitious industrial strategy that will build a stronger, more resilient, more independent Canadian economy, and ensure workers and industries can bridge to that future and seize its opportunities.

https://www.canada.ca/en/global-affairs/news/2026/02/minister-sidhu-highlights-plan-to-transform-canadas-auto-industry-in-brampton.html

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