To help settle the ongoing dispute over the proposed U.S. electric vehicle (EV) tax credits, Prime Minster Justin Trudeau says he would be willing to ‘align’ Canada’s EV incentives with those south of the border.
Trudeau made the comments during a press conference this morning in Ottawa, saying the current proposal would harm US-Canada auto relations that have been built over the past 50+ years.
“We are working very hard with the United States on getting them to understand that this proposed EV rebate for American built cars only is not good obviously for Canada, but also not good for the United States. There are a number of solutions we put forward, one of them would be to align our incentives in Canada and the United States to make sure that there is no slippage, no unfair advantages on one side or the other, we are happy to do that,” Trudeau said.
Canadian officials have been in discussions with their counterparts in the U.S. for several weeks over the proposed Build Back Better Vehicle Act. The bill proposes a $12,500 tax credit on EVs built by unionized workers in the US.
Last week Canada also threatened to slap tariffs on other US products if the bill passes.
Aside from these potential changes, the federal government is also considering retooling the existing iZEV rebate program to include more expensive SUVs and pickup trucks.
You can watch Trudeau’s comments below.