Canada is threatening to take a tough line with the USA if senators approve President Joe Biden’s controversial tax credit for electrical automobiles.
In a letter to key members of the U.S. Senate, Deputy Prime Minister Chrystia Freeland and Commerce Minister Mary Ng are promising retaliatory tariffs on American merchandise if the tax credit score proposal turns into regulation.
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Canada nonetheless has ‘runway’ to forestall U.S. EV tax credit score, commerce minister says
The letter says Canada is on the brink of publish a listing of U.S. merchandise it might be keen to focus on, together with inside — however not restricted to — the auto sector.
The letter additionally threatens to hit the pause button on concessions to U.S. dairy producers underneath the U.S.-Mexico-Canada Settlement.
Freeland and Ng say Canada doesn’t need to go down a “path of confrontation,” noting the prospect for the 2 international locations to work collectively on selling the expansion of electrical automobiles throughout North America.
They are saying the U.S. might remedy the issue by making certain Canadian-made automobiles and batteries are additionally eligible for the credit score, which if handed could be value as much as $12,500 for a U.S. automobile purchaser.
© 2021 The Canadian Press
