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Automotive

Ottawa’s tariffs undercut Ottawa’s EV mandate

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5 minute read

From the Fraser Institute

By Kenneth P. Green

Asian countries such as China and Japan were not particular threats to prior automotive markets because North America’s massive and diverse internal combustion vehicle markets were capable of relatively lower-cost production of superior quality vehicles. That’s not shaping up to be the case for EVs, which are vastly more expensive coming off North American assembly lines than in China and other Asian countries.

Seemingly every week, Canada’s electric vehicle (EV) transition policy framework grows more incoherent. The goal of Canada’s EV policy is to ensure all new light-duty vehicle sales in Canada are zero-emission vehicles (ZEVs), with a strong emphasis on battery-electric vehicles, by 2035.

The latest incoherence is Prime Minister Trudeau’s announcement of 100 per cent tariffs on Chinese EV imports and 25 per cent tariffs on Chinese steel and aluminum imports (the Canada needs to build EVs). This will directly undercut the government’s EV transition targets by denying Canadians access to affordable electric cars.

The stated rationale for the tariffs is, according to Finance Minister Chrystia Freeland, that the “Chinese are trying to corner the North American EV market by dumping subsidized vehicles into it” and that “China has an intentional, state-directed policy of overcapacity and oversupply designed to cripple our own industry” so “we simply will not allow that to happen to our EV sector.” And arguably, some of that is probably reasonable.

Tariffs are generally understood as protectionist mechanisms, designed to shield domestic industries from lower-cost foreign competition by making imported goods more expensive. Additionally, they can serve as punitive measures to penalize countries for hostile economic or political actions. By limiting access to one’s markets, tariffs can reduce the profits of the targeted country, thereby pressuring it to alter behaviours or policies. When imposed against countries intentionally sabotaging markets, tariffs may be considered a legitimate response.

But tariffs on China will also hurt Canadians by keeping lower-cost goods out of our market, leaving them with only higher-priced goods and services provided by protected domestic industries that need not fear price competition and thus feel little pressure to lower the prices for their goods and services.

And this is part of the incoherence of the new Trudeau tariff policy. The Trudeau EV mandates are set to create, in essence, a monopoly on the types of automotive technologies (again, EVs) allowed to be used in Canada, which other countries can manufacture more cheaply than domestic manufacturers. Asian countries such as China and Japan were not particular threats to prior automotive markets because North America’s massive and diverse internal combustion vehicle markets were capable of relatively lower-cost production of superior quality vehicles. That’s not shaping up to be the case for EVs, which are vastly more expensive coming off North American assembly lines than in China and other Asian countries.

By driving up the costs of buying EVs in Canada, the Trudeau government will directly undercut its EVs-by-2035 mandate. If people can’t afford EVs, as most currently cannot, the EV mandate targets are doomed. People will simply hold their old internal-combustion vehicles for longer. This trend is already observable in the United States where new vehicles have become more expensive. Americans are holding on to their vehicles longer than ever, with the average vehicle age reaching 13.6 years.

The Trudeau government’s highest priority has been the war on climate change, which various government leaders in Canada and around the world have proclaimed the greatest threat to people and the planet in human history. But if the government is sincere about this, then the priority should be to maximize Canadians’ access to cheaper EVs, and the prime minister should be largely indifferent to where Canadians choose to source those EVs. Indeed, he should urgently want low-cost EVs available to Canadians for there to be any hope of achieving his all-EV by 2035 goal.

Automotive

Major automakers push congress to block California’s 2035 EV mandate

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Quick Hit:

Major automakers are urging Congress to intervene and halt California’s aggressive plan to eliminate gasoline-only vehicles by 2035. With the Biden-era EPA waiver empowering California and 11 other states to enforce the rule, automakers warn of immediate impacts on vehicle availability and consumer choice. The U.S. House is preparing for a critical vote to determine if California’s sweeping environmental mandates will stand.

Key Details:

  • Automakers argue California’s rules will raise prices and limit consumer choices, especially amid high tariffs on auto imports.

  • The House is set to vote this week on repealing the EPA waiver that greenlit California’s mandate.

  • California’s regulations would require 35% of 2026 model year vehicles to be zero-emission, a figure manufacturers say is unrealistic.

Diving Deeper:

The Alliance for Automotive Innovation, representing industry giants such as General Motors, Toyota, Volkswagen, and Hyundai, issued a letter Monday warning Congress about the looming consequences of California’s radical environmental regulations. The automakers stressed that unless Congress acts swiftly, vehicle shipments across the country could be disrupted within months, forcing car companies to artificially limit sales of traditional vehicles to meet electric vehicle quotas.

California’s Air Resources Board rules have already spread to 11 other states—including New York, Massachusetts, and Oregon—together representing roughly 40% of the entire U.S. auto market. Despite repeated concerns from manufacturers, California officials have doubled down, insisting that their measures are essential for meeting lofty greenhouse gas reduction targets and combating smog. However, even some states like Maryland have recognized the impracticality of California’s timeline, opting to delay compliance.

A major legal hurdle complicates the path forward. The Government Accountability Office ruled in March that the EPA waiver issued under former President Joe Biden cannot be revoked under the Congressional Review Act, which requires only a simple Senate majority. This creates uncertainty over whether Congress can truly roll back California’s authority without more complex legislative action.

The House is also gearing up to tackle other elements of California’s environmental regime, including blocking the state from imposing stricter pollution standards on commercial trucks and halting its low-nitrogen oxide emissions regulations for heavy-duty vehicles. These moves reflect growing concerns that California’s progressive regulatory overreach is threatening national commerce and consumer choice.

Under California’s current rules, the state demands that 35% of light-duty vehicles for the 2026 model year be zero-emission, scaling up rapidly to 68% by 2030. Industry experts widely agree that these targets are disconnected from reality, given the current slow pace of electric vehicle adoption among the broader American public, particularly in rural and lower-income areas.

California first unveiled its plan in 2020, aiming to make at least 80% of new cars electric and the remainder plug-in hybrids by 2035. Now, under President Donald Trump’s leadership, the U.S. Transportation Department is working to undo the aggressive fuel economy regulations imposed during former President Joe Biden’s term, offering a much-needed course correction for an auto industry burdened by regulatory overreach.

As Congress debates, the larger question remains: Will America allow one state’s left-wing environmental ideology to dictate terms for the entire country’s auto industry?

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Also Interesting

Top Used Ford SUVs for Families and Adventurers

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Finding the perfect SUV that balances comfort, safety, and adventure-ready performance can be a challenge, but Ford’s lineup of used SUVs offers some of the best options available. Whether you need a spacious vehicle for your growing family or an all-terrain companion for weekend getaways, there’s a Ford SUV to match your lifestyle. Let’s explore the top choices that deliver reliability, versatility, and affordability.

What to Look for in a Used Ford SUV?

Before diving into specific models, it’s essential to know what features matter most when shopping for a used Ford SUV. Here are key factors to consider:

● Safety Features – Look for models equipped with Ford Co-Pilot360, which includes automatic emergency braking, blind-spot monitoring, and adaptive cruise control.
● Reliability and Maintenance Costs – Research common issues and ensure the SUV has a solid maintenance history.
● Fuel Efficiency – Choose a model that aligns with your commuting or road trip needs.
● Cargo and Passenger Space – Ensure the SUV has enough room for your family, gear, and pets.
● Off-Road Capability – If adventure is your goal, opt for models with all-wheel drive (AWD) or four-wheel drive (4WD).

If you’re ready to explore available options, check out https://stampedeauto.com/used-ford/ for a selection of quality used Ford SUVs.

1. Ford Escape – The Compact Family Favorite

The Ford Escape is a practical, fuel-efficient SUV perfect for small families and urban explorers. With a history of strong safety ratings and a spacious interior, it strikes a balance between convenience and performance.

Why Choose a Used Ford Escape?

● Fuel Efficiency – Older models with the 1.5L EcoBoost engine offer up to 30 MPG highway.
● User-Friendly Technology – Equipped with Ford SYNC infotainment and smartphone connectivity.
● Versatile Cargo Space – Fold-flat rear seats provide ample room for groceries, sports equipment, or luggage.
● Best Model Years to Buy – 2018-2021 models have modern safety features and improved fuel economy.

2. Ford Edge – The Perfect Mid-Size Balance

For those who want more space without stepping into full-size territory, the Ford Edge is an ideal midsize SUV. It offers a roomy two-row layout, strong engine options, and a smooth ride.

Why Choose a Used Ford Edge?

● Spacious Cabin – More rear legroom than many competitors.
● Powerful Engine Choices – Available 2.0L EcoBoost and 2.7L V6 for extra performance.
● Advanced Safety Features – Includes lane-keeping assist and pre-collision assist in newer models.
● Best Model Years to Buy – 2019-2022 models offer a modern design and strong reliability.

3. Ford Explorer – The Ultimate Family SUV

If you need three rows of seating without sacrificing performance, the Ford Explorer is a top contender. It’s an excellent SUV for large families and those who need extra passenger capacity.

Why Choose a Used Ford Explorer?

● Seating for Up to Seven – Third-row seats offer flexibility for larger families.
● Strong Towing Capacity – Can tow up to 5,000 lbs when properly equipped.
● Powerful Yet Efficient – The 2.3L EcoBoost engine delivers a balance of power and fuel savings.
● Best Model Years to Buy – 2017-2022 models feature advanced driver assistance and improved comfort.

4. Ford Expedition – The Full-Size Powerhouse

For those who need maximum space and towing capability, the Ford Expedition is a standout choice. It’s built for large families, cross-country road trips, and hauling heavy loads.

Why Choose a Used Ford Expedition?

● Room for Eight – A full-size SUV with unmatched passenger space.
● Towing King – Can tow up to 9,300 lbs, ideal for boats and trailers.
● High-Tech Features – SYNC 3 infotainment and multiple USB ports keep everyone connected.
● Best Model Years to Buy – 2018-2022 models have turbocharged efficiency and refined interiors.

5. Ford Bronco Sport – The Adventurer’s Compact Choice

For outdoor enthusiasts, the Ford Bronco Sport is a rugged compact SUV designed for off-road fun while still being a practical daily driver.

Why Choose a Used Ford Bronco Sport?

● Trail-Ready Performance – Standard AWD and off-road modes for different terrains.
● Compact Yet Spacious – Clever storage solutions for camping and gear.
● Turbocharged Engines – 1.5L and 2.0L EcoBoost options for strong performance.
● Best Model Years to Buy – 2021-2023 models provide the latest tech and rugged styling.

Before purchasing a used Ford Bronco Sport, be sure to check for any recalls. For example, certain Ford Bronco Sport and Maverick models have been recalled to fix faulty batteries. To learn more about this, visit Consumer Reports’ coverage on the recall.

Buying Tips: How to Get the Best Deal on a Used Ford SUV

● Certified Pre-Owned (CPO) Options – Ford’s CPO program includes extended warranties and inspections.
● Check Vehicle History Reports – Avoid SUVs with major accidents or unresolved recalls.
● Test Drive and Inspection – Always inspect brakes, transmission, and suspension.
● Compare Prices – Look at local dealerships and online marketplaces for the best deals.
● Negotiate Smartly – Research market value and be prepared to walk away if needed. It also helps to choose a used car dealer with transparent pricing and a solid reputation.

Conclusion

Choosing the right used Ford SUV depends on your specific needs. If you want fuel efficiency and city-friendly size, the Escape is a great choice. For those needing extra space and towing power, the Explorer or Expedition are top contenders. If adventure is a priority, the Bronco Sport
offers unbeatable off-road capability.

No matter which Ford SUV you choose, you’ll get a reliable vehicle that blends comfort, technology, and performance—without the high price tag of a new model. Start your search today and find the perfect used Ford SUV for your family or next adventure.

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