Prime Minister Mark Carney says he’s going to “ensure the federal government buys from Canadian suppliers,” as he unveiled the new ‘Buy Canadian’ strategy.
The measures introduced on Friday include the waiver of the EV mandate for automakers and a relief package for canola farmers dealing with Chinese tariffs.
What is the ‘Buy Canadian’ strategy?
The federal government already has a similar policy in place for the use of Canadian steel and softwood lumber for federal projects. A “Buy Canadian” strategy is essentially a mandate for the federal government to use local content in major government projects. In July, Carney had announced Canada would “restrict and reduce foreign steel imports entering the Canadian market.”
When it came to using metal in major national infrastructure projects, Canada “will ensure Canadian steel and other Canadian materials are prioritized in construction,” he said.Last month, the policy was extended to Canadian lumber. Canada, according to Carney, would “require companies contracting with the federal government to source lumber from Canada.” The policy is now applicable to all economic sectors, not just steel and lumber, as announced on Friday. These initiatives will help workers acquire new skills and businesses retool their production and diversify their products, while spurring more domestic demand for Canadian businesses,” Carney said.The government said it will extend this approach to all federal funding streams and Crown corporations, and “provide a roadmap for provinces and municipalities to apply similar standards to their own procurement.”
Which sectors will see support?
A $370 million package for canola farmers, who face a 75.8% tariff from China, was also included in Friday’s announcement. The package is meant to incentivize canola farmers to produce biofuel.To facilitate this, the federal government will amend the Clean Fuel Regulations to “support the domestic biofuels industry.”
While U.S. President Donald Trump’s tariffs on Canada do not include goods traded under the Canada-U.S.-Mexico trade agreement (CUSMA), sectoral tariffs on Canadian steel, aluminum and autos remain.
In an effort to give relief to the tariff-hit Canadian auto sector, Carney said he was also waiving the Electric Vehicle mandate for 2026 – which previously required car makers to ensure a certain percentage of their vehicles were EVs.
Additionally, Carney has proposed the $5 billion Strategic Response Fund for businesses affected by US tariffs, which he pledged during the federal election. The new strategy also includes a reskilling program for up to 50,000 workers affected by tariffs.
Carney unveils ‘Buy Canadian’ plan and canola tariff help amid trade war
