Parliamentarians are moving to take a hard look at Ottawa’s electric vehicle strategy after cabinet opened the door to Chinese-made battery cars and restored generous rebates for U.S.-built electrics, a move critics warn could sideline Canadian workers and industry.Blacklock's Reporter says the Commons industry committee unanimously voted to study the Liberal government’s EV policies following testimony from Industry Minister Mélanie Joly, who said she could not understand opposition to the measures. Joly argued the strategy was essential to keeping Canada competitive as global auto markets shift toward electrification.Joly told MPs the policy is about positioning Canada to build and export vehicles worldwide, rather than being constrained by geography. She insisted the approach is backed by automakers, unions, consumer groups and Ontario Premier Doug Ford, claiming it rewards companies that spend in Canada.She also accused Conservatives of resisting electrification despite the government backing away from mandatory EV sales targets. .Cabinet last week repealed its Electric Vehicle Accessibility Standard, which had set quotas leading to 100% electric vehicle sales by 2035, while maintaining its broader push to cut greenhouse gas emissions and align with European policies.At the same time, Ottawa revived a $5,000 federal rebate for new electric vehicle purchases, excluding Chinese-made models but covering U.S.-built vehicles. That decision drew sharp criticism from Conservative MP Raquel Dancho, who sponsored the motion launching the committee study.Dancho questioned why Canadian taxpayers should subsidize electric vehicles manufactured entirely in the United States, arguing the policy does nothing to create domestic jobs. She described the subsidy as unethical, saying it funnels public money south of the border while offering little benefit to Canadian workers.Adding to the controversy, cabinet on January 16 granted low-tariff market access to Chinese battery electric automakers, despite a 2025 Department of Finance assessment that Beijing has engaged in predatory trade practices. The move sparked opposition from Unifor, Ontario’s premier and several domestic automakers concerned about being undercut by state-backed Chinese competitors.The committee’s study will examine Ottawa’s broader EV agenda, including its treatment of Chinese imports and the economic impact of subsidizing foreign-made electric vehicles, as MPs from all parties signal growing unease with the government’s direction.
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