Trudeau comes up short on US EV tax credits

Justin Trudeau returned to Ottawa this week without a solution to the proposed US electric vehicle tax credit.

The Canadian Prime Minister hoped to find a solution that included Canadian manufacturing into the proposed EV tax cuts.

The meeting on tax credits was a one-on-one meeting between the US and Canada.

This meeting happened during this week’s Three Amigo’s Summit. The summit is between US President Joe Biden, Canadian Prime Minister Justin Trudeau and Mexican President Andres Manual Lopez Obrador.

Canadian representatives fear that the tax credits will undermine Canadian manufacturing of EV’s. Currently, General Motors, Ford and Stellantis all have assembly plants in southern Ontario.

Most of their vehicles assembled end up in the United States market.

Trudeau noted that this was the first meeting about the tax credits at his level, and the Canadian government will continue to advocate for Canadian manufacturing.

Earlier in the week, Canadian government officials noted that the tax credits would violate the USMCA treaty rules. As well it could also violate World Trade Organization rules.

The bill that includes the tax credits is still in Congress and has yet to pass through both houses. However, Canada noted that they would respond if the tax credits do eventually get passed.

However, after the meeting, a senior White House official did note they are open to continue discussions on the issue with Canada.

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