This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas. Also consider subscribing to our Automotive - Washington edition covering critical GR news south of the border.

Dates: 2026-04-12 to 2026-04-18

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• Science and Research Committee: Canada-China EV Arrangement—Hearings on April 20 and April 23: On April 20 (3:30–5:30 p.m.) and April 23 (11:00 a.m.–1:00 p.m.), the Science and Research Committee will host hearings on the implications of the Canada-China Preliminary Joint Arrangement regarding the electric vehicle sector, featuring testimony from industry, academic, and labor representatives. The meetings will be webcast.
• Industry and Technology Committee: Impact of U.S. Tariffs on Canadian Manufacturing—April 20: On April 20, from 3:30 to 5:30 p.m., the Industry and Technology Committee will discuss economic and supply chain ramifications of U.S. tariffs on Canada's metallurgical and advanced manufacturing sectors. Representatives from moldmaking and tool manufacturing companies are scheduled to testify.
• Public Safety and National Security: CBSA in H2O Corridor and Port Practices—April 21: The Public Safety and National Security Committee meets April 21 (3:30–5:30 p.m.) to address the role of the Canada Border Services Agency (CBSA) in H2O Highway Corridor port clearance practices, with witnesses including officials from Transport Canada and the Used Car Dealers Association of Ontario.
• Natural Resources Committee: Canadian Energy Exports—April 21: On April 21, from 11:00 a.m. to 1:00 p.m., the Natural Resources Committee convenes to discuss Canadian energy exports, with testimony from Export Development Canada, LNG Canada, Advanced Biofuels Canada, and others.

Federal Government News

Government to Suspend Federal Fuel Excise Tax for Summer 2026

On April 14, the Department of Finance Canada announced legislative amendments to the Excise Tax Act that will temporarily set federal fuel excise tax rates on gasoline, diesel fuel, and aviation fuels to zero cents per litre. The tax suspension is scheduled to take effect April 20, 2026, and remain through Labour Day, September 7, 2026, in response to fuel price pressures following global oil disruptions. As of April 19, the excise tax will no longer be applied at the manufacturer or wholesaler level, removing 10 cents per litre on gasoline and unleaded aviation gasoline, and 4 cents per litre on diesel and other aviation fuels. The measure does not impact heating oil, natural gas, or propane, which are also not subject to the federal excise tax. The suspension is projected to provide over $2.4 billion in total tax relief for the period. Regular taxation is set to resume on September 8, 2026, with rates returning to 10 cents per litre for gasoline and unleaded aviation gasoline, and 4 cents per litre for diesel and aviation fuels.

Sources: www.canada.ca

Mangrove Lithium Launches Commercial Refining Facility with Federal Support

On April 16, Natural Resources Canada marked the formal opening of Mangrove Lithium’s new commercial electrochemical lithium refining facility in Delta, BC. The site, supported by up to $21.9 million through the Critical Minerals Research Development and Demonstration (CMRDD) program, will be able to produce battery-grade lithium sufficient for approximately 25,000 electric vehicles each year. This is the first commercial-scale plant of its type in North America. With Canada now the world’s seventh-largest producer of lithium, the project aims to capture more domestic value in the battery supply chain by processing lithium locally. The development responds to concentrated foreign refining markets and is intended to support Canada’s EV production and energy storage ecosystem.

Sources: www.canada.ca

Innovation Announcement for Automotive Sector to Take Place at Truck World 2026

Parliamentary Secretary Karim Bardeesy, on behalf of Industry Minister Mélanie Joly, will make an announcement regarding research and development innovation for the automotive sector at the Truck World 2026 expo in Mississauga, Ontario, on April 17 at 4:00 p.m. ET. Media attendance requires pre-registration with Innovation, Science and Economic Development Canada. The announcement is expected to address government-led activities advancing R&D support in the vehicle manufacturing space.

Sources: www.canada.ca

Federal Investment to Structure Quebec’s Defence Industrial Ecosystem

The Government of Canada, through Canada Economic Development for Quebec Regions, is allocating $4,495,000 in non-repayable funding to Aéro Montréal, Propulsion Québec, and Sous-traitance industrielle Québec (STIQ) to support local SMEs in integrating or expanding within national and international defence supply chains. The initiative was announced April 13 by Industry Minister Mélanie Joly at the Aéro Montréal International Aerospace Innovation Forum. The funding is designed to provide SMEs in aerospace, electric, and smart transportation in Quebec with commercialization assistance and support in meeting sector requirements. The contributions form part of the Regional Defence Investment Initiative for Quebec, with $64.9 million over three years, and align with Budget 2025’s Defence Industrial Strategy funding envelope of $6.6 billion over five years.

Sources: www.canada.ca

Minister Joly’s European Mission to Promote Auto, Battery, Aerospace Investment

From April 19 to 24, Minister Mélanie Joly will visit Germany and Norway to advance Canadian industrial interests, focusing on the battery, aerospace, auto, and defence sectors. In Germany, she will participate at the HANNOVER MESSE 2026 trade fair, meeting senior government and industry figures to promote Canadian supply chain and manufacturing capabilities. The German itinerary emphasizes investment attraction, bilateral supply chain collaboration—building on a February joint declaration with Germany on autos and batteries—and increased resilience in trans-Atlantic trade. In Norway, Minister Joly will meet with officials and private sector leaders to encourage cooperation on defence, research, and supply chain issues, as well as follow up on discussions between Canadian and Norwegian prime ministers.

Sources: www.canada.ca

Government of Canada Invests in Edmonton Area Business Modernization

The Prairies Economic Development Canada (PrairiesCan) announced more than $8.4 million in public investment on April 17 to support seven business projects in the greater Edmonton region. The funding, drawn from the Regional Tariff Response Initiative (RTRI), targets small- and medium-sized companies across manufacturing sectors, including homebuilding, cooling products, and steel parts, enabling them to integrate automation, adopt AI tools, boost staff levels, and expand into new markets. Four of these projects are expected to create or maintain over 150 jobs in Alberta and drive productivity increases as businesses adjust to heightened global tariff uncertainty.

Sources: www.canada.ca

Monthly Survey Reports Manufacturing Sales Rise in Transportation Equipment, Machinery

Statistics Canada’s Monthly Survey of Manufacturing for February 2026 reports a 3.6% national increase in manufacturing sales compared to the previous month, with strongest growth observed in transportation equipment, machinery, and primary metals. Chemical subsector sales saw the largest decline. Industry participants may wish to note broad-based improvements in core automotive manufacturing segments during this period.

Sources: www.statcan.gc.ca

February New Motor Vehicle Sales Down Year-Over-Year

Statistics Canada recorded 124,004 new motor vehicles sold in February 2026, a decrease of 0.9% compared to the same month in 2025. Dollar sales were largely unchanged, dropping less than 0.1% year-over-year. The share of new passenger car sales fell by 3.8%, while truck sales saw a smaller decrease of 0.5%. These figures suggest shifting consumer demand patterns within the vehicle market.

Sources: www.statcan.gc.ca

Minister Sidhu Holds Economic Discussions with China’s Vice-Premier, Including EV Import Quota

Minister of International Trade Maninder Sidhu met with He Lifeng, Vice-Premier of China, on April 13, on the margins of the China International Consumer Products Expo. Discussions centered on the ongoing Canada-China strategic partnership, the role of Canadian companies at the Expo, and bilateral economic cooperation. Notably, the meeting agenda included Canada’s allocation and administration of the import quota for electric vehicles from China. Minister Sidhu also signaled readiness to resume the Canada-China Economic and Financial Strategic Dialogue.

Sources: www.canada.ca

Statistics Canada Releases National Input-Output Tables for 2024

Statistics Canada has published the national input-output tables for 2024, along with revisions for 2022 and 2023. The input-output tables are a main reference for detailed supply-chain analysis in vehicle manufacturing, parts, and exports.

Sources: www.statcan.gc.ca

Provincial Government News

Nova Scotia to Enforce Stronger Air Quality Regulations in June

The Government of Nova Scotia announced it will update Air Quality Regulations effective June 1, expanding the number of regulated air pollutants from 6 to 26 for industry sources.

Sources: news.novascotia.ca

Ontario Reports New Convictions Under Provincial Tax Laws

The Ontario Ministry of Finance released information on 15 convictions under the Retail Sales Tax, Land Transfer Tax, and Employer Health Tax Acts, underscoring ongoing compliance actions that can affect vehicle dealers and buyers.

Sources: news.ontario.ca

Alberta Introduces Bill for 120-Day Approval of Major Projects

Alberta tabled Bill 30, the Expedited 120-Day Approvals Act, proposing a fixed 120-day regulatory window for priority projects exceeding $250 million in capital investment.

Sources: www.alberta.ca

British Columbia Backs Manufacturing Growth in Kootenay Region

The Government of BC has announced nearly $700,000 in support for two Kootenay manufacturers, Applied Compression Systems and Mountain Munchies, as part of the BC Manufacturing Jobs Fund.

Sources: news.gov.bc.ca

Quebec Government Schedules Spring 2026 Public Auctions for Fleet Vehicles

The Government Acquisitions Center in Quebec announced public auctions on April 29 (Montreal) and May 13 (Quebec City) for over 555 lots including passenger and commercial vehicles.

Sources: www.quebec.ca

What We're Reading This Week

• Electric vehicles could see rebound amid rising gas and new federal consumer rebates: Coverage on how increases in fuel prices and government incentives may influence Canadian EV demand.
• Concerns about electric vehicle charges by travel nurse company paid out by health authority: Report on how EV usage by a staffing firm led to expense issues with a public health body.
• Do you want an electric car?: News outlet explores current consumer attitudes toward electric vehicle adoption.

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