The Canadian Liberal government has maintained its policy to ban the sale of new gas-powered vehicles by 2035, mandating a transition to electric vehicles (EVs). This policy includes a phased approach requiring 20% of new vehicle sales to be zero-emission by 2026, 60% by 2030, and 100% by 2035. The ban and EV sales mandate have faced strong opposition from Conservative MPs and various stakeholders who argue it will increase vehicle prices by up to CAD 20,000, threaten approximately 38,000 to 40,000 Canadian auto sector jobs, and disproportionately impact rural communities and industries reliant on long-distance travel or harsh winter conditions. Conservatives tabled motions to repeal the ban and the EV mandate, emphasizing consumer choice and economic concerns, but these motions were defeated in parliamentary votes with support from Liberal, NDP, and Bloc parties. Automakers have expressed cautious optimism following meetings with Prime Minister Mark Carney but have urged reconsideration of the mandate, citing declining EV sales and operational challenges. Meanwhile, the European Union is preparing to exempt its heavy industry from its own carbon border tax, raising questions about Canada's commitment to its carbon tax policies and potential competitive disadvantages for Canadian exporters. Environment ministers from two major Canadian provinces have also called for the elimination of Trudeau-era environmental policies, citing economic growth concerns. Critics, including Conservative leaders, have labeled the EV mandate as a costly carbon tax that undermines consumer freedom and job security, calling for its repeal.