Conservative Leader Pierre Poilievre has announced a new policy proposal aimed at strengthening Canada’s auto sector by securing tariff-free access to the United States market and increasing vehicle production across North America.
Speaking at a manufacturing facility in Windsor, Ontario, Poilievre outlined a plan that he said could benefit both Canada and the United States by boosting production and reducing trade barriers between the two countries. He suggested the proposal would align with the economic priorities of the U.S. administration and help stabilize the North American auto industry.
The plan proposes a one-for-one production-to-sales system under which automakers producing vehicles in Canada would be allowed to sell an equivalent value of vehicles made in the United States or Mexico in Canada without tariffs. The rule would operate on a dollar-for-dollar basis and is intended to encourage manufacturers to maintain and expand production on both sides of the border.
Poilievre argued that Canada’s auto industry remains heavily dependent on the American market, noting that roughly 90 per cent of vehicles manufactured in Canada are exported to the United States. He said expanding access to that market is critical because Canada currently has limited overseas export options for automobiles.
The proposal also calls for Canada to harmonize vehicle emissions standards with the United States and align Canadian tariffs with American measures on Chinese imports. Canada previously joined the United States in imposing steep tariffs on Chinese electric vehicles in response to concerns about government subsidies and unfair trade practices.
Tariffs have become a major issue for the North American auto sector in recent years. Since April 2025, vehicles crossing the Canada–U.S. border have faced tariffs of up to 25 per cent on non-American components as part of trade measures introduced by the U.S. administration under President Donald Trump.
Poilievre said his proposal aims to increase Canada’s annual vehicle production to about two million units over the next decade. Canadian production reached about 1.2 million vehicles last year, down significantly from more than 2.3 million vehicles produced in 2016.
The Conservative plan would also remove the federal sales tax on Canadian-made vehicles and eliminate existing federal subsidies for electric vehicles. Earlier this year, the federal government under Prime Minister Mark Carney announced the return of a national rebate program for electric vehicle purchases.
Additional elements of the proposal include restrictions on vehicles using software connected to Chinese or Russian companies, along with the development of a common North American cybersecurity and data protection standard for the auto sector. The plan also proposes limiting the presence of certain foreign-connected vehicles near Canadian military bases and other sensitive infrastructure.
Poilievre said he has consulted with labour groups within the auto industry and believes workers should support the proposal, though union representatives have not yet publicly commented on the plan.
The announcement followed meetings between the Conservative leader and executives from major automakers including General Motors and Ford Motor Company in Detroit, where Poilievre said industry leaders expressed interest in seeing tariffs reduced to encourage greater production across North America.