Canada’s prime minister, Justin Trudeau, said Monday that Canada would “align” its own electric vehicle incentives with America’s if cars and trucks made north of the border could be made eligible for proposed tax credits.
President Joe Biden’s administration has proposed tax incentives for electric vehicles, with additional incentives given to vehicles made in America by union workers. This has led to resistance from both Mexico and Canada, and many foreign automakers who make vehicles in the U.S. with non-union workers.
Prime Minister Trudeau said that Canada and the U.S. have been building cars together for years and that the alliance was threatened by Biden’s efforts, reports the Associated Press. In fact, Canada’s deputy prime minister, Chrystia Freeland, and its trade minister, Mary Ng, warned last week that retaliatory tariffs and other punitive measures could be implemented if the tax-credit proposal becomes law.
Read Also: Canada Could Slap Tariffs On U.S. Products In Response To EV Tax Credit
Now, though, Trudeau appears to be offering another option. The comments suggest, too, that Canadians interested in buying an electric vehicle may be eligible for tax credits similar to those offered in the U.S. on American-built EVs.
The Biden administration’s current proposal would see union-made vehicles built in the U.S. eligible for up to $12,500 USD ($16,000 CAD at current exchange rates) in incentives. Canada, meanwhile, only offers up to $5,000 CAD ($1,952-$3,904 USD) but the federal government there is planning to retool the program.
The suggestion that the U.S. and Canada could work together on tariffs will no doubt be welcomed by GM, which announced its plans to build the BrightDrop delivery vans in Ingersoll, Ontario. It could also offer hope for the workers at Stellantis’ Brampton plant.
