Prime Minister Mark Carney has unveiled a plan to bolster Canada’s car industry and support its electric vehicle transition, as the sector buckles under the weight of US tariffs.

The new initiatives, announced on Thursday, mark Canada’s latest effort to reduce its reliance on the US, amid Donald Trump’s push for more domestic car production.

Carney’s strategy includes financial incentives for carmakers to invest in Canada and the reintroduction of rebates for EVs.

Trump last year imposed a 25% tariff on Canadian cars and car parts. The levies were a shock to car production in Canada, where roughly 90% of vehicles are exported to the US.