Good morning! Welcome back to Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for car manufacturers, parts suppliers, car dealers, and others in the automotive industry.

Every Monday, we break down the most important updates in this space in under five minutes.

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Start Date: 2025-04-20
End Date: 2025-04-26

Top Headlines

Main Stories

Canada Imposes 25% Surtax on U.S. Motor Vehicles in Response to U.S. Tariffs

The United States Surtax Order (Motor Vehicles 2025), detailed in SOR/2025-118, came into effect on April 9, 2025, applying a 25% surtax on U.S.-origin motor vehicles imported to Canada. Vehicles not entitled to the United States Tariff are subject to a surtax on the full value, while those entitled to the United States Tariff face a surtax calculated on the value minus Canadian and Mexican content, as defined by CUSMA Rules of Origin. Importers claiming greater than 15% Canadian and Mexican content must provide documentary evidence. Vehicles in transit on the effective date and certain tariff items are excepted. This measure is a direct response to recent U.S. tariffs on Canadian vehicles.

Sources: Canada Gazette, Part II: www.gazette.gc.ca

Canadian International Trade Tribunal Initiates Inquiries into Steel Products Impacting Vehicle Manufacturing

The Canadian International Trade Tribunal has opened a preliminary injury inquiry into alleged dumping of carbon or alloy steel wire from multiple countries, and a final injury inquiry into corrosion-resistant steel sheet from Türkiye. Outcomes of these proceedings may affect input costs and sourcing for automotive and parts manufacturing. The Tribunal will determine by June 19, 2025, if dumping has caused injury in the wire case, and by August 15, 2025, for the steel sheet case.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Important Updates

Secondary Stories

U.S. Auto Industry Expresses Concern Over New Auto Parts Tariffs

The U.S. auto sector warns that new tariffs on auto parts are expected to raise prices and reduce sales, with potential cross-border implications.

Sources: Canadian News Outlet: amp.cbc.ca

Provincial Announcements

Ontario Advances 'One Project, One Process' for Mining Approvals

Ontario’s new legislative framework aims to reduce review times for mine development projects by at least 50%, affecting the Ring of Fire and northern communities.

Sources: Provincial Announcement: news.ontario.ca

B.C. Awards $794,991 in Vision Zero Grants for Road Safety

British Columbia distributed funds to 50 communities, including 15 First Nations, for road and pedestrian safety improvements under the Vision Zero Grant Program.

Sources: Provincial Announcement: news.gov.bc.ca

Alberta Invests $3 Million in Forestry-Based Hydrogen Production

Alberta is funding a feasibility study for turning forestry waste into hydrogen, aiming to support low-emission fuels for transport and industry.

Sources: Provincial Announcement: www.alberta.ca

Ontario Commits Over $75 Million to Research and Innovation Projects

Ontario is investing in 162 projects, including research on turning scrap metal into clean energy and developing AI platforms for traffic management using connected vehicles.

Sources: Provincial Announcement: news.ontario.ca

Public Officials' Social Media

Pierre Poilievre Asserts Liberal Plan Will Impose $20,000 Tax on Gas and Diesel Vehicles

Pierre Poilievre posted that a fourth Liberal term would see a $20,000 tax on gas and diesel vehicles, promoting Conservative opposition to the measure.

Sources: Social Media: x.com

Michelle Rempel Garner Highlights Vehicle Manufacturers Association Support for Scrapping 2030 EV Mandate

Michelle Rempel Garner referenced the head of the Canadian Vehicle Manufacturers Association in support of the Conservative plan to end the 2030 EV sales mandate.

Sources: Social Media: x.com

Tim Uppal Claims Gas Vehicle Sales Will Be Capped in 2026 Under Current Government

Tim Uppal stated that manufacturers exceeding the gas-powered vehicle quota in 2026 would face a $20,000 tax per vehicle.

Sources: Social Media: x.com

Rick Perkins Cites Automobile Manufacturers Association Support for Ending $20k Gas Vehicle Tax

Rick Perkins noted endorsement from the Automobile Manufacturers Association for Conservative opposition to the scheduled $20,000 tax on gas vehicles.

Sources: Social Media: x.com

Chris Warkentin Comments on 2035 Mandate for Zero-Emission Vehicles

Chris Warkentin posted that by 2035, government policy will prohibit the purchase of gas-powered vehicles, including hybrids.

Sources: Social Media: x.com

Pierre Poilievre Outlines Conservative Plan to Scrap Vehicle Tax and Remove Sales Tax on Canadian-Made Vehicles

Pierre Poilievre stated that a Conservative government would remove the $20,000 tax on gas and diesel vehicles and eliminate the sales tax on Canadian-made vehicles while tariffs remain.

Sources: Social Media: x.com

Dean Allison Repeats Conservative Pledge to Scrap $20,000 Tax on Gas Cars

Dean Allison reiterated on social media the Conservative commitment to eliminate the upcoming $20,000 tax on gas-powered cars.

Sources: Social Media: x.com

Ryan Williams Questions Government Mandate on Vehicle Choices

Ryan Williams posted about Ottawa’s 100% EV sales mandate for 2035 and the expected disappearance of gas and hybrid cars by 2030.

Sources: Social Media: x.com

What We're Reading This Week

• Trump trying to 'break' the auto industry, says car parts association president: The president of a Canadian car parts association reacts to U.S. auto tariffs.
• U.S. auto industry warns new auto parts tariffs will hike prices, cut sales: U.S. industry sources warn of rising prices and falling sales due to new auto parts tariffs.
• MOTOR VEHICLE AND PARTS DEALERS: Financial Post coverage and updates on the Canadian auto and parts dealership sector.