the proposed us tax credit is included in president joe bidens 175 trillion spending package pending in congresscanadian prime minister justin trudeau said monday he has proposed harmonizing rebates with the united states for electric vehicles to avoid a trade conflict over washingtons goitalone plan that risks gutting canadas auto sector his remarks followed threatened retaliatory tariffs on american goods and ottawas suspension of parts of the landmark north american free trade agreement if washington went ahead with electric vehicle tax credits for evs made in us union shops canada and the united states have been making cars together for over 50 years now our supply chains are deeply integrated trudeau told a news conference that is why we are working very hard with the united states on getting them to understand that this proposed ev rebate for americanbuilt cars only is not good obviously for canada but also not good for the united states he said advt trudeau added that a number of solutions have been suggested to washington including to align our incentives in canada and in the united states to make sure that there is no slippage or no unfair advantages on one side or the other the proposed us tax credit is included in president joe bidens 175 trillion spending package pending in congress it would encourage us production of electric vehicles by offering a bigger tax credit for local unionbuilt electric vehicles ev and phases out for imported evs after five years in a letter to us senators on friday deputy prime minister chrystia said it would amount to a 34 percent tariff on canadian assembled electric vehiclesalso readangry canada threatens to impose tariffs on us goods over ev tax credit plancanada fears the tax credit for american manufacturers will undermine its own efforts to produce electric vehicles in ontario the countrys industrial heartland and also undermine the integrated north american auto industrysee more detailsmexico auto groups warn reaction to us ev tax credits could spark trade warthe proposed 12500 ev tax credit would include 4500 for evs built in the united states by union workers effective after 2027 it is included in the biden administrations sweeping climate and social spending legislation now under consideration by congresssee more details afp published on dec 14 2021 at 0937 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app ev rebates ev tax credit international electric vehicles ev future mobility electrification trudeau homenewsindustrytrudeau proposes canada us harmonize electric