People in Canada and the U.S. approach buying electric vehicles in completely different ways these days. One country offers fresh cash incentives to make EVs more affordable, while the other rolls back support and lets market forces take over. This contrast affects not just drivers but entire car companies, leading some to rethink big investments. For readers new to electric cars, the story boils down to government choices on energy, jobs, and consumer habits.
Canada leads with buyer incentives. Earlier this week, Prime Minister Mark Carney unveiled the EV Affordability Program, backed by $2.3 billion over five years. Starting mid-month, the program provides rebates of up to $5,000 for battery electric or fuel cell vehicles and $2,500 for plug-in hybrids. Qualifying cars cost $50,000 or less, except those made in Canada, and must come from free trade partners like the U.S. or Mexico. Individuals and businesses can claim the money at purchase or lease, applied directly by dealers. Rebate levels decrease yearly, from $5,000 in 2026 to $1,000 by 2030 for full electrics. Officials project this will drive 840,000 sales. Provinces pile on extras, such as British Columbia’s own rebates, pushing total discounts past $10,000 in places.Â
The plan revives and refines earlier efforts like the iZEV program, which paused after offering similar deals. Now it prioritizes local production and aligns with dropping battery prices. A family considering a Chevy Equinox EV or Tesla Model 3 finds the upfront cost easier to swallow. No rebate wait times complicate things either, since dealers subtract it on the spot. Fleet operators eyeing electric delivery vans see quick payback through lower fuel needs.Â
The U.S. picture flips under President Trump. After coming to office the administration scrapped Biden’s push for 50% to 60% EV sales by 2030. It also killed the $7,500 federal tax credit from the Inflation Reduction Act. Tariffs on Chinese batteries and components added expense. No national rebates filled the gap. While states like California hold their ground, federal policy now favors gas and hybrid engines, with emphasis on oil production. Trump labeled EVs impractical for most Americans. Automakers gained flexibility but inherited overbuilt EV infrastructure from prior expectations.
Stellantis N.V. (NYSE: STLA, Euronext Paris: STLAP) illustrates the fallout. The maker of Jeep, Ram, and Dodge reported $26 billion in restructuring charges recently. These cover scaled-back EV projects and a return to V8 engines. Plants idle as assets from the electric rush get written off. Ford slashed 95% of its EV spending in 2025 and honed the F-150 Lightning. General Motors dialed back Ultium battery plants. Industry-wide write-downs since Trump’s changes exceed tens of billions. Without incentives, U.S. EV demand cooled, while gas trucks thrive amid steady oil prices.
These charges stem from excess capacity built under old mandates. Firms now shelve prototypes, shutter lines, and refurbish tools for traditional powertrains. Stellantis eyes Hemi V8s for Wranglers, matching buyer tastes for torque over charging stations. Stock prices wavered on the announcement, though some see it as unloading loss-making bets. In Canada, Stellantis models like the Dodge Hornet plug-in hybrid snag rebates, softening U.S. blows.
The divide ripples through business. Ontario fleets snag Canadian rebates for electric rigs, trimming long-term costs. U.S. operators favor reliable diesels. Supply chains reroute batteries to rebate-eligible origins. North American manufacturing may fragment further, with Canada luring factories via funds and the U.S. trusting consumer choice.
Automakers straddle both worlds. Stellantis leverages Canadian sales to balance U.S. setbacks. Border shoppers gain options. Canada’s rebates last to 2030, rewarding early adopters most. U.S. hybrids fill the void until batteries drop in price organically. Electric lanes run parallel to gas ones across the continent.
