Federal iZEV rebates may return in full or partial form to revive struggling EV sales.
Canada may revise 100% tariffs on Chinese-built EVs after informal talks with major automakers.
Policy reset aims to balance domestic manufacturing protection with consumer affordability and EV adoption goals.
There’s talk circulating that Canada may be preparing to revive its suspended federal electric vehicle purchase incentives and reconsider its steep tariffs on Chinese-made cars, in a potential revision reflecting both consumer and industry pressure.
The federal iZEV (Incentives for Zero-Emission Vehicles) program, which offered up to $5,000 on eligible new EVs, ran out of funding and was paused earlier this year. It appears Ottawa is now weighing a return to a full or partial version of the plan, with specific eligibility criteria, though no timeline or budget details have been confirmed. Transport Canada officials have publicly acknowledged that a replacement incentive is being explored, with an emphasis on supporting “Canadian workers and manufacturers” while making EV adoption more accessible amid rising costs.
Since the program’s suspension, national EV sales have stagnated or declined throughout the year. Dealers and automakers alike have warned that without federal support, Canada risks losing momentum in its transition to zero-emission mobility, especially as provinces like Quebec and British Columbia maintain their own purchase rebates.
At the same time, the federal government is believed to be re-evaluating its 100% tariff on Chinese-built electric vehicles, implemented in October 2024 to mirror Washington’s trade stance. The measure, designed to counter what Ottawa called “unfairly subsidized” imports, has faced growing criticism from economists and industry analysts who argue that it limits consumer choice and drives up vehicle prices.
Canada to Impose Import Duties on Stellantis and GM Over Plant Closures
Logically, any revision to the tariff structure would likely be model- or manufacturer-specific, mirroring the more flexible, case-by-case approach taken by European regulators in recent months. Ottawa is said to be in early-stage, informal talks with several Chinese automakers to explore compliance or investment pathways that could ease the import restrictions.
If confirmed, both the return of iZEV incentives and a selective softening of Chinese car tariffs would mark a significant reset in Canada’s EV policy. It would aim to balance protectionist instincts with the practical realities of a cooling electric-vehicle market.
Another offshoot would be reduced dependence on American automakers. If we take it one step further, Chinese automakers could see fit to retool Stellantis, GM, and Ford plants, not to mention take over a certain Northvolt plant…
While we’re at it, South Korean automakers could also establish factories in the True North Strong and Free.
Prime Minister Mark Carney’s government has not commented directly on these potential policy adjustments.
