In a letter to U.S. legislators, Deputy Prime Minister Chrystia Freeland and International Trade Minister Mary Ng issued a threat against U.S. electric car policy. Deputy Prime Minister Chrystia Freeland has addressed top U.S. senators, warning to halt parts of the USMCA trade agreement and slap duties on U.S. products unless the U.S. backs down on a proposed tax credit for American-built EVs.
Freeland and Mary Ng mentioned in the letter, “We are extremely concerned that some sections of the proposed Build Back Better Act for electric car tax credits would contravene the United States’ responsibilities under the US-Mexico-Canada Agreement.”
According to the letter, “the plan is comparable to a 34% levy on Canadian-assembled electric automobiles.” “The plan is a de facto abdication of the USMCA and poses a substantial threat to the Canadian automobile industry.”
Congress considers significant tax credits worth up to $12,500 for owners of new electric cars made in the United States, as long as union employees make the cars. Experts believe that the tax would be devastating to Canada’s automobile industry, attempting to attract fresh investment as it shifts away from internal combustion engines.
Freeland and Ng emphasize the integrated structure of the North American automotive sector in correspondence to Senate Majority Leader Charles Schumer and Senate Minority Leader Mitch McConnell, and six other legislators who serve on key Senate committees.
The letter states, “We have been making vehicles together for almost 50 years.” “Approximately 50% of Canadian-assembled vehicles are made in the United States, while Canada imports over $22 billion in automotive parts from the United States each year.”
Source: CBC News