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Trudeau’s electric vehicle mandate could cause Canada’s power grid to collapse, analysis shows

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From LifeSiteNews

By Anthony Murdoch

Not only would the need to generate more electric power skyrocket, but prices and taxes would soar for consumers, a Fraser Institute study found.

A noted fiscally conservative think tank warned that a proposed federal mandate from the government of Prime Minister Justin Trudeau to ban the sale of new gasoline/diesel-only powered cars after 2035 and allow electric-only sales is an unrealistic fantasy that would cause massive chaos by threatening to collapse the nation’s power grids.

“Requiring all new vehicle sales in Canada to be electric in just 11 years means the provinces need to substantially increase their power generation capabilities, and adding the equivalent of 10 new mega-dams or 13 new gas plants in such a short timeline isn’t realistic or feasible,” said G. Cornelis van Kooten, a Fraser Institute senior fellow and author of “Failure to Charge: A Critical Look at Canada’s EV Policy.”

“Canadians need to know just how much additional electricity is going to be required in order to meet Ottawa’s electric vehicle mandate, because its impact on the provinces — and taxpayers and rate payers — will be significant.”

Van Kooten’s in-depth analysis of the impending electric vehicle (EV) mandate was released March 14 and estimates that to meet the 2035 target national electric generation would need to go up some 15.3% in only 11 years, which is a monumental task.

This would mean building no less than 10 new mega hydro dams nationwide, or at least 13 new large natural gas plants, according to Van Kooten. For those pushing so-called “green” power, that would mean some 5,000 new wind turbines, which all must still be backed up by natural gas peaker plants because of their unreliability when the wind is not blowing.

Given the length of time it takes to build a natural gas plant due to red tape, costs, and other factors, van Kooten observed that “the major obstacle relates to the likelihood of constructing sufficient power generating capacity to meet the anticipated demand EVs would impose on electricity grids.”

“The real-world situation is not as easy as merely replacing current ICE vehicles with EVs, and there are many obstacles to be overcome on the path of electrifying the personal vehicle fleets within Canada,” he said.

“The type of electricity that goes into the grid would also be a big consideration when switching over to EVs, as jurisdictions will need to increase their electricity production capabilities with green sources that meet the additional hourly load requirements and can be employed quickly to balance intermittent renewable energy sources.”

Van Kooten’s study looks at how much extra electricity will be required in all of Canada’s biggest provinces, Ontario, British Columbia, and Quebec to meet the 2035 EV mandate.

Trudeau plans to ban the sale of new gasoline-powered cars after 2035. The EU (European Union) also has an EV mandate in place for the same year.

Canadian Environment Minister Steven Guilbeault announced just before Christmas the “Electric Vehicle Availability Standard.” This is a plan that will mandate that all new cars and trucks by 2035 be electric, which would in effect ban the sale of new gasoline- or diesel-only powered vehicles after that year.

The reality is that electric cars cost thousands more to make and buy, are not suited to Canada’s cold climate, offer poor range and long charging times (especially in cold weather), and have batteries that take tremendous resources to make and are hard to recycle.

Just over a week ago, LifeSiteNews reported that a 2022 study found that electric vehicles pollute at a rate far higher than their gasoline or diesel-powered counterparts.

Not all Canadian provinces are on board Trudeau’s EV dictate

In January, LifeSiteNews reported that Alberta’s Minister of Energy criticized the federally funded Canadian Broadcasting Corporation (CBC) for publishing a report stating that electric cars are better able to handle cold weather than gas-powered ones, all at the same time an extreme cold snap gripped much of western Canada and nearly caused Alberta’s power grid to collapse due to its increased reliance on so-called renewable energy.

Alberta Premier Danielle Smith has promised that she intends to fight with “everything” at her disposal what she called an “unconstitutional” new federal government EV mandate as well as a net-zero power generation, which if implemented would lead to guaranteed power outages.

She noted that when it comes to Trudeau’s EV mandate, “Ottawa is trying to force increased demands on the electricity grid while simultaneously weakening Alberta’s and other provinces’ grids through their federal electricity regulations.”

Trudeau’s EV mandates have also been called out by the automotive industry in Canada. The Canadian Vehicle Manufacturers’ Association said in response to the new EV mandate that forcing people to buy EVs will “disproportionately impact households living in rural and northern communities that may have lower access to public charging infrastructure.”

 

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Automotive

Trump announces 25% tariff on foreign automobiles as reciprocal tariffs loom

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President Donald Trump announced a permanent 25% tariff on automobiles made in other countries that will go into effect on April 2.

Trump made the announcement Wednesday in the Oval Office. He also hinted that the reciprocal tariffs he plans to announce on April 2 could be more lenient, suggesting the tariffs would be less than fully reciprocal.

“What we’re going to be doing is a 25% tariff on all cars not made in the U.S.,” the president said.

Asked if any changes could avert the auto tariffs, Trump said they would be “permanent.”

“This will continue to spur growth like you haven’t seen before,” Trump said.

Trump said the tariffs will be good news for auto companies that already build products in the U.S. He also said carmakers that don’t build in the U.S. are looking to do so.

“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” Trump said.

The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue. Trump said eventually he hopes to bring in $600 billion to $1 trillion in tariff revenue in the next year or two.

Trump also said the tariffs would lead to a manufacturing boom in the U.S., with auto companies building new plants, expanding existing plants and adding jobs.

Trump also urged House Speaker Mike Johnson to approve a measure that would allow car buyers to deduct the interest on loans for cars that are made in America. Trump said that such a plan would make cars nearly free for buyers.

“So when you get a loan to buy a car … I think it’s going to pay for itself, I don’t think there’s any cost,” he said.

Trump also said the reciprocal tariffs he plans to unveil on April 2 would be fair.

“We’re going to be very nice actually,” he said. “It’ll be, in many cases, less than the tariff they’ve been charging us for decades.”

European Commission President Ursula von der Leyen said tariffs would hurt businesses and consumers.

“I deeply regret the U.S. decision to impose tariffs on European automotive exports,” she said. “Tariffs are taxes – bad for businesses, worse for consumers, in the U.S. and the EU.”

Business groups, including the U.S. Chamber of Commerce and American Farm Bureau Federation, have urged Trump to back off tariff threats.

Trump has promised that his tariffs would shift the tax burden away from Americans and onto foreign countries, but tariffs are generally paid by the people who import the products. Those importers then have a choice: absorb the loss or pass it on to consumers through higher prices. He also promised tariffs would make America “rich as hell.” Trump has also used tariffs as a negotiating tactic to tighten border security.

Tariffs are taxes charged on imported products. The company importing the products pays the tariffs and can either try to absorb the loss or pass the additional costs on to consumers.

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Automotive

Nissan, Honda scrap $60B merger talks amid growing tensions

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MxM News

Quick Hit:

Nissan is reportedly abandoning merger talks with Honda, scrapping a $60 billion deal that would have created the world’s third-largest automaker. The collapse raises questions about Nissan’s turnaround strategy as it faces challenges from electric vehicle competitors and potential U.S. tariffs.

Key Details:

  • Nissan shares dropped over 4% following the news, while Honda’s stock surged more than 8%, signaling investor relief.
  • Honda reportedly proposed making Nissan a subsidiary, a move Nissan rejected as it was initially framed as a merger of equals.
  • Nissan is struggling with financial challenges and the transition to EVs, still reeling from the 2018 scandal involving former chairman Carlos Ghosn.

Diving Deeper:

Merger talks between Nissan and Honda have collapsed, according to sources, after months of negotiations to form an auto giant capable of competing with Chinese EV makers like BYD. The proposed deal, valued at over $60 billion, would have created the world’s third-largest automaker. However, differences in strategy and control ultimately derailed the discussions.

Reports indicate that Honda, Japan’s second-largest automaker, wanted Nissan to become a subsidiary rather than an equal merger partner. Nissan balked at the idea, leading to the collapse of negotiations. Honda’s market valuation of approximately $51.9 billion dwarfs Nissan’s, which may have fueled concerns about control. The failure of talks sent Nissan’s stock tumbling more than 4% in Tokyo, while Honda’s shares rose over 8%, reflecting investor confidence in Honda’s independent strategy.

Nissan, already in the midst of a turnaround plan involving 9,000 job cuts and a 20% reduction in global capacity, now faces mounting pressure to restructure on its own. Analysts warn that the failed merger raises uncertainty about Nissan’s ability to compete in an industry rapidly shifting toward EVs. “Investors may get concerned about Nissan’s future [and] turnaround,” Morningstar analyst Vincent Sun said.

Complicating matters further, Nissan faces heightened risks from U.S. tariffs under President Donald Trump’s trade policies. Potential tariffs on vehicles manufactured in Mexico could hit Nissan harder than competitors like Honda and Toyota. The stalled deal also impacts Nissan’s existing alliance with Renault, which had expressed openness to the merger. Renault holds a 36% stake in Nissan, including 18.7% through a French trust.

While both Nissan and Honda have stated they will finalize a direction by mid-February, the collapse of this deal signals deep divisions in Japan’s auto industry. With Nissan’s financial struggles and the growing dominance of Chinese EV makers, the company must now navigate an increasingly challenging market without external support.

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