Group 1 - Canada plans to adjust its tariff system to provide stronger fiscal incentives to attract automotive manufacturers and mitigate the negative impact of U.S. policies aimed at bringing manufacturing jobs back [1][4] - The Canadian government will maintain retaliatory tariffs on U.S.-made cars and trucks, which were implemented in response to tariffs imposed by former President Trump [1][4] - A new "import credit" mechanism is being consulted, which will help automotive companies reduce tariff costs, allowing companies like Toyota and General Motors to receive credits based on their production levels [1][4] Group 2 - The proposed new tariff system is part of a series of reforms aimed at boosting the Canadian automotive industry, which has faced pressure due to high integration of supply chains with the U.S. market [1][4] - The new fuel efficiency standards for cars and trucks will replace the previously opposed electric vehicle mandates, aiming for 90% of new car sales to be electric vehicles by 2040 [3][6] - The government will also reinstate a consumer incentive program for purchasing or leasing electric vehicles, with a budget of 2.3 billion CAD (approximately 1.7 billion USD), applicable only to vehicles produced in countries with which Canada has free trade agreements [3][6]