The sitting was dominated by a Conservative opposition motion on the automotive industry, which took up the bulk of Government Orders and spilled into Oral Questions. The central political argument was whether the government’s new auto strategy, which includes a $2.3-billion electric vehicle (EV) rebate program, properly supports Canadian workers or instead subsidises foreign-made vehicles, particularly those from the United States, during a trade war.
The main item of Government Orders business was the Conservative opposition motion on automotive strategy. The motion called on the government to scrap subsidies for foreign-made EVs entering Canada, remove the GST on Canadian-made vehicles, and use existing authority to reduce tax withheld on severance payments for laid-off GM CAMI workers in Ingersoll. Conservatives argued that under the Liberal government, auto production has halved from 2.3 million to 1.2 million vehicles annually, and 5,000 auto-sector jobs have been lost, partly due to U.S. tariffs. They said the new EV rebate would mostly benefit vehicles built outside Canada, including in the United States, and that Canadian tax dollars should not subsidise American factories during a trade war. The Liberals defended the strategy, saying it includes a $3-billion strategic response fund, a $2.3-billion EV affordability program, and $1.5 billion for charging infrastructure. They argued the North American auto industry is integrated, that Canadian parts are used in U.S.-assembled EVs, and that the rebate supports consumer choice and the transition to electrification. The Bloc Québécois supported EV subsidies but criticised the government for backtracking on climate targets and for continuing subsidies to the oil and gas sector. The NDP called for better income supports for displaced workers and for mental health care to be brought under the Canada Health Act. A recorded division on the motion was requested.
Oral Questions focused on three recurring themes: the Tumbler Ridge mass shooting, housing affordability, and the automotive strategy. On public safety, the government confirmed the Minister of Public Safety was on the ground in Tumbler Ridge and that the Prime Minister would attend a vigil there. On housing, Conservatives pressed the government to adopt their plan to remove the GST on new homes under $1.3 million, citing falling home ownership rates and a CMHC forecast of declining housing starts. The government pointed to the Build Canada Homes act and budget 2025 as delivering affordable housing. On the automotive industry, Conservatives repeatedly asked why the government was subsidising American-made EVs during a trade war. The government replied that the industry is integrated, that Canadian parts are used in U.S. EVs, and that the strategy is supported by unions and industry.