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National Observer
an hour ago
- National Observer
Ottawa warned early in new year of wheels wobbling on $100 billion EV strategy
The federal government was warned early in 2025 that its $100 billion electric vehicle strategy was in danger of being run off the road by slowing North American EV sales and the economic mayhem sown by US President Donald Trump's tariffs on Canada, a newly released document reveals. François-Philippe Champagne, then federal minister of Innovation, Science and Economic Development Canada, was sent a briefing note on Jan. 10 by his deputy minister, Philip Jennings, that flagged 'a decline in expectations' among EV makers that imperiled the plan's progress. 'The slowdown in growth has contributed to delays, modifications, or scaling back of planned investments' in the auto sector despite tens of billions of dollars in investments having already been announced, Jennings said in the document obtained by Canada's National Observer through an access to information and privacy request. The briefing note was delivered to Champagne only weeks after he told CNO that critics of the government's embattled EV strategy lacked 'vision and ambition.' Champagne was named Minister of National Revenue in a cabinet shuffle after the Liberals won the April federal election that also saw Mélanie Joly take over the Industry, Science and Economic Development portfolio. Developing an EV industrial ecosystem from mining critical minerals used in vehicle batteries to new assembly lines for electric vehicles would give Canada a competitive advantage in a global industry 'for decades to come — but not overnight,' Champagne said in December. Joly's office told Canada's National Observer that it 'recognizes the sector's concerns and is continuing to engage meaningfully with industry stakeholders to address and alleviate challenges' linked to US tariffs, though no specific action plan was outlined in its response. 'Despite short-term policy fluctuations, the long-term trajectory for EV adoption remains strong,' says Dunsky Energy analyst Lindsay Wiginton 'Our government is working to ensure EVs are made in Canada, so Canadian workers benefit from the growth and jobs in this industry," said a spokesperson. Canada's EV plans going flat? A total of $46.1 billion in investments across the Canadian EV supply chain was announced by automakers including Honda, Volkswagen, GM and Ford from October 2021 to April last year. Federal and provincial governments pledged $52.5 billion in incentives, tax breaks and other support, according to Canada's Parliamentary Budget Officer, which provides economic analysis to the government. But dark skies have threatened the EV strategy and long-term future of auto manufacturing in Ontario as the Canada-US trade war drags on. In April, GM shuttered its CAMI assembly plant in Ingersoll, Ont., where it builds an electric delivery van. GM expected to reopen the plant at 'half capacity' in the fall. Ford and Stellantis, which cited tariffs as a major factor in a $3.7 billion loss in the first half of 2025, have also suspended or delayed EV production in Canada. Some 40,000 EVs have been produced to-date in Canada, which in 2024 imposed a 100 per cent tariff on imports of Chinese EVs to protect the domestic industry. China made 12.4 million electric cars last year, accounting for 70 per cent of global EV output, according to the International Energy Agency. Battery makers have hit speed bumps too. A planned $7 billion EV manufacturing plant in Saint-Basile-le-Grand and McMasterville, Que, collapsed after Swedish battery maker Northvolt declared bankruptcy in March. The Quebec government lost a $270 million investment in the project. More recently, trouble emerged at the $5 billion NextStar EV battery factory being built by Stellantis and South Korea's LG Energy in Windsor, Ont. Several Canadian contractors have filed lawsuits alleging millions of dollars in unpaid work at the plant, which has received $15 billion in federal and provincial incentives, according to media reports. Jennings said in his briefing note that slowing EV purchases had 'created doubt in the trajectory of [future] sales'. Trump's executive orders soon after taking office to scrap Biden-era EV targets and tax credits, along with the end of federal EV incentives in Canada, have 'added uncertainty' in the market, the note said. 'In the long-term these impacts on their own are unlikely to jeopardize the prosperity of the automotive sector in Canada, but they depend on the electrification plans of the manufacturer and the health of the sector overall, including the impact of potential U.S. policies and tariffs,' Jennings said. EV transition 'unstoppable' The federal government should stick to its long-term plan for an EV supply chain in Canada because the global shift to EVs is 'unstoppable,' said Matthew Fortier, CEO of Accelerate, a Toronto-based zero-emissions vehicle industrial alliance. There are signs of 'underlying momentum' for Canada's EV industry, said Lindsay Wiginton, managing consultant at research house Dunsky Energy. She noted many analysts have a positive global EV outlook, including projections that a quarter of all cars sold in 2025 will be electric. That growth is 'driven in large part by the continued decline in lithium-ion battery costs that is helping to bring more affordable EV models' to market, she said. 'Despite short-term policy fluctuations, the long-term trajectory for EV adoption remains strong,' she added. Some auto makers are less optimistic. They want the federal government to drop a mandate for EVs to make up 20 per cent of cars sold in Canada by 2026 and 100 per cent by 2035 – arguing that slowing EV sales and US tariffs have delayed efforts to build an electric vehicle supply chain. Ontario Premier Doug Ford, speaking at a joint press conference on Tuesday with Alberta's Danielle Smith and Saskatchewan's Scott Moe, said: 'We have to get rid of these mandates. The companies won't be able to meet these targets. But let's not stop spending. I am confident that the EV sector will grow eventually.' Environment Minister Julie Dabrusin has been unswayed by their arguments so far, according to media reports. Canada's 'competitive advantages' Fortier said Canada's automotive sector cannot hope to be 'globally relevant in 10-15 years' unless Ottawa focuses on 'competitive advantages that our neighbours don't have' in areas including critical minerals, advanced industrial materials, and EV battery technology. 'If we do that now, Canada can become a necessary part of the continental supply chain, and we can have leverage in the auto sector when EVs are the dominant mode of vehicle production in North America,' Fortier said. The US is by far the biggest market for Canadian-made cars and trucks, with 93 per cent of the $51 billion in vehicles exported in 2023 shipped south of the border, according to the Canadian Vehicle Manufacturers' Association, an industry trade body. The US imposed a 25 per cent tariff on Canadian auto makers and parts manufacturers in April, forcing hundreds of job losses in Ontario, the industry's historic heartland. Trump has threatened to raise the tariffs to 35 per cent on Aug 1. A high-profile US-Japan trade deal announced today (Wednesday) will see the US tariff on Japan's auto sector lowered to 15 per cent from 35 per cent. That deal might point to a possible reduction in US tariffs on Canadian car makers, but it is not a long-term solution, Fortier said. 'Any standing tariff on Canadian-made cars is a reminder that we urgently need to develop more negotiating leverage. The way to do this is to build upstream and midstream capacity for the batteries that will power the future of this sector,' he said.
Toronto Sun
8 hours ago
- Toronto Sun
New Arctic ambassador will play 'key role' in defending sovereignty: Anand
Published Jul 24, 2025 • 4 minute read Foreign Affairs Minister Anita Anand, front left to right, Northern and Arctic Affairs Minister and minister responsible for the Canadian Northern Economic Development Agency Rebecca Chartrand, Finance Minister Francois-Philippe Champagne and Minister of Indigenous Services Mandy Gull-Masty arrive for a meeting of the Inuit-Crown Partnership Committee, in Inuvik, N.W.T., on Thursday, July 24, 2025. Photo by Darryl Dyck / THE CANADIAN PRESS OTTAWA — Foreign Affairs Minister Anita Anand says Canada's new Arctic ambassador will play a key role in preserving sovereignty in the region as the military closely watches the movements of a Chinese icebreaker. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Iqaluit resident Virginia Mearns will be Canada's senior Arctic official on the world stage, following a career with local Inuit governments. 'Canada's Arctic ambassador is going to advance Canada's polar interests in multilateral forums,' Anand told The Canadian Press in an interview from Inuvik, N.W.T. She said Mearns will 'engage with counterparts in both Arctic and non-Arctic states' and 'serve as a representative in our diplomatic core.' Anand said Canada will follow through on its $35-million Arctic foreign policy and its commitment to open new consulates in both Alaska and Greenland, despite the government's announcement of cuts to the foreign service to fund a boost in military spending. She said she plans to visit Greenland to open the consulate 'in due course.' This advertisement has not loaded yet, but your article continues below. Anand said both consulates will be 'very useful' as they are integrated into the Arctic policy. 'This is a full-court press in terms of ensuring that we are doing whatever it takes to defend Canadian sovereignty,' she said of the Arctic policy. Read More Mearns' appointment coincided with a major meeting Thursday between Prime Minister Mark Carney and Inuit leaders to discuss his government's controversial major-projects legislation. Anand said she attended the meeting in the Northwest Territories because the Inuit-Crown Partnership Committee touches on many themes that apply to both Canada's foreign and domestic agendas. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. But her visit also comes as the Canadian military closely observes Chinese icebreaker Xue Long 2 as it gathers information north of Alaska. Anand said that in her former role as defence minister, she was 'very concerned about the potential for threats in Arctic waters' and had the Canadian Armed Forces intensify its efforts 'to detect, deter and defend against instances such as Chinese vessels near Canada's Arctic waters.' She said the military 'is actively monitoring the dual-purpose Chinese research vessel,' which she said was not 'in Canadian territorial waters' as of Thursday afternoon. 'The Canadian Armed Forces will continue to actively monitor the vessel, and ensure that Canadian sovereignty is protected at every turn,' she added. This advertisement has not loaded yet, but your article continues below. 2nd Lt. Cammeron Radford, public affairs officer for the Canadian Forces Joint Operations Command, told The Canadian Press in an email the vessel can be live-tracked on numerous websites. 'The Canadian Joint Operations Command is actively monitoring the vessel Xue Long 2 with a CP-140 Aurora aircraft, based out of Alaska,' he wrote Thursday afternoon. 'Competitors are exploring Arctic waters and the sea floor, probing our infrastructure, and collecting intelligence using dual-purpose research vessels and surveillance platforms. The CAF will continue to actively monitor the Xue Long 2 so long as it continues to operate near Canadian territorial waters.' RECOMMENDED VIDEO Canada's Arctic foreign policy document, released last December, noted that Beijing sends research vessels into the Arctic, though it described some of China's forays as 'dual-use,' with both research and military applications. This advertisement has not loaded yet, but your article continues below. Mearns declined to give an interview when The Canadian Press called her Thursday but she said she would be open to speaking at a later date. Her appointment comes after U.S. President Donald Trump repeatedly called for Canada to become a U.S. state and floated the idea of annexing Greenland. Inuit Tapiriit Kanatami, which represents the interests of Inuit in Canada, has voiced concerns about another wave of militarization of their territories like the one during the Cold War. Those decades of militarization in the Arctic led to forced relocations of Inuit communities, the loss of property and disruptions to traditional ways of life. ITK has said that Inuit want to help defend Canada against foreign threats but in a way that respects local realities. The group has been in touch with Inuit counterparts in Greenland and Alaska about recent events. This advertisement has not loaded yet, but your article continues below. Natan Obed, president of ITK, said he's 'very pleased' with the government's decision to name Mearns as Canada's new Arctic ambassador. Obed said Mearns' name was among those floated to take on the role, though a 'full-scale co-developed process' with the government was interrupted by the federal election. Obed said Mearns will be an 'incredible contributor in diplomacy at this point in time for Canada.' 'And she's an Inuk from Nunavut so also will bring that Inuit perspective to any room that she's in, whether here in Canada or abroad,' Obed said. Anand said Ottawa is very aware of its legacy in the region and wants to build better partnerships. 'The work that the government of Canada is doing now is absolutely essential to ensuring that Canadian sovereignty, and the defence of our Arctic, is fulfilled at the highest level. And that work specifically includes the partnership with Indigenous peoples,' she said. This advertisement has not loaded yet, but your article continues below. 'The relationship with Indigenous peoples is not only important but also absolutely necessary. And I have learned that they are dedicated, kind and willing partners with whom we will continue to collaborate.' The government's Arctic policy calls for tighter security co-ordination to counteract the closer ties between Beijing and Moscow, and for collaboration on scientific research in the region. The policy document says the North American Arctic is 'no longer free from tension' because of the rise in geopolitical instability following Russia's invasion of Ukraine, which has 'shaken the foundations of international co-operation in the Arctic.' Ottawa appointed Mary Simon, now governor general, as its first ambassador for circumpolar affairs in 1994. She held the post for a decade. Jack Anawak then held the role until 2006, at which point the Harper government discontinued the post. — With files from Alessia Passafiume and Aaron Sousa in Inuvik. Sports Toronto & GTA Canada Toronto & GTA World
CBC
8 hours ago
- CBC
Canada-U.S. trade deal hopes appear to fade after latest talks
Although U.S. President Donald Trump's Aug. 1 deadline is fast approaching, there is no sign of a breakthrough yet on a new Canada-U.S. trade deal after a week of talks in Washington, D.C. Ottawa continues to say it won't sign anything that isn't in Canada's best interest.
