Dissatisfied with U.S. electric vehicle tax credits, Canada threatens to take retaliatory action

　　Dissatisfied with the U.S. electric vehicle tax credit, Canada threatens to take retaliatory action

　　[Global Net Report] Is it a trouble?

According to media reports such as Agence France-Presse and Malaysia’s “New Straits Times”, Canadian Deputy Prime Minister Christia Freeland wrote to the US Senator on the 10th saying that if Washington implements greater tax credits for electric vehicles produced in the US trade union workshops, It will harm the Canadian auto industry, and Canada will impose comprehensive tariffs on U.S. goods and suspend the implementation of parts of the landmark U.S.-Mexico-Canada agreement.

　　According to the report, the US "Rebuild a Better Future Act" proposes to encourage local American companies to produce electric vehicles by imposing greater tax credits on electric vehicles produced in US labor union workshops and phasing out imported electric vehicles after five years.

　　Freeland said in the letter that Ottawa was "deeply concerned" about the tax credit measure, which violated the US-Canada-Mexico Agreement.

She also said that the tax credit proposed by the bill means a 34% tariff on electric vehicles assembled in Canada, which "posed a major threat to the Canadian auto industry and effectively abolished the US-Canada-Mexico Agreement."

　　For this reason, Freeland said that if the measure is passed, Canada may impose retaliatory tariffs on the U.S. auto industry, temporarily prohibiting U.S. goods from entering the Canadian dairy product market, and preventing the implementation of new rules related to the U.S.-Canada-Mexico Agreement.

　　Freeland also said that Canada will publish a list of American products that may face Canadian tariffs in the next few days.

　　The “Wall Street Journal” and other media reported that the “Rebuild a Better Future Act” was passed in the US House of Representatives on the 19th of last month and will then be sent to the Senate for a vote.

The bill proposes that all electric vehicles sold in the United States will enjoy a tax incentive of $7,500, and electric vehicles manufactured by workers of the National Union of Automobile Workers (UAW) can receive an additional $4,500 in tax credits if the vehicle’s battery Made in the U.S., you can get another $500 tax credit.

Mexico and Canada believe that this measure threatens the North American integrated automotive supply chain supported by the US-Canada-Mexico Agreement.