OTTAWA — Conservative Leader Pierre Poilievre announced a national campaign on Thursday aimed at dismantling Canada's electric vehicle (EV) mandate, which he has labeled the "Carney tax." This initiative comes as the Conservatives seek to challenge the Liberal government's policy, which they argue could have detrimental effects on rural communities.

Poilievre criticized the Liberal government's plan, stating that it would "literally erase many small towns from the map." He emphasized the potential job losses and increased costs associated with the mandate, which is set to require that 20 percent of all light-duty vehicles sold in Canada be zero-emission vehicles by next year. This requirement is expected to escalate annually until it reaches 100 percent by 2035.

At a press conference held on a farm in Corman Park, near Saskatoon, Poilievre claimed, "(Prime Minister) Mark Carney's promised to ban your gas truck and car, a ban that begins phasing in just months from today. It will kill jobs, balloon costs, and grind rural communities to a halt."

The zero-emission vehicle mandate does not outright ban gas-powered vehicles. Instead, it imposes penalties on manufacturers who fail to meet the sales targets, with fines reaching up to $20,000 per vehicle sold over the cap. Poilievre argues that these costs will ultimately be passed on to consumers.

The vehicle manufacturing industry has expressed concerns about the feasibility of meeting the mandate, citing U.S. tariffs and the cessation of government sales incentives as significant barriers. Recent data from Statistics Canada indicates that EVs accounted for only 7.86 percent of new vehicle sales in May, a decline attributed to the depletion of federal rebates earlier this year.

In December 2024, prior to the rebate program's suspension, EV sales peaked at 18.3 percent. However, sales dropped to 11.95 percent in January and further declined to 6.53 percent in March, before showing slight improvements in April and May.

Several federal ministers have hinted at the possibility of reinstating consumer rebates for EVs, a promise made during the election campaign. However, no timeline has been provided, leading to frustration among car dealers who believe the uncertainty is negatively impacting sales.

Poilievre described the EV mandate as "ideological" and outlined the Conservatives' strategy to advocate for its repeal through public events, petitions, and motions in the House of Commons. He stated, "Consumers should be free to choose the car or truck that they drive."

He referenced a study by the Canadian Automobile Association, which found that electric vehicles experience significant battery performance drops in cold weather, reducing their effective range by up to 39 percent. Poilievre argued that the mandate threatens the rural way of life.

A recent poll conducted by Leger revealed that 71 percent of Canadians believe it is unrealistic to phase out gas-powered vehicles by 2035. Among Conservative voters, only 11 percent support the mandate, while 41 percent of Liberal voters share similar sentiments. The survey also indicated that 48 percent of respondents attribute low EV sales to high costs, despite government subsidies, while 39 percent cited insufficient charging infrastructure.

In response to Poilievre's campaign, a spokesperson for Environment and Climate Change Minister Julie Dabrusin stated that the government is "continuing to meaningfully engage with industry and explore flexibility to make sure that our measures reflect (the) times we are in."

The Conservatives previously campaigned against the consumer carbon price, which resonated with many Canadians facing rising living costs. Poilievre's slogan "axe the tax" became a frequent refrain in the House of Commons, particularly during the fall sitting last year. Following his swearing-in as prime minister in March, Carney eliminated the consumer carbon price, citing its divisive nature and Poilievre's role in spreading misinformation about it.