Canada willing to 'align' EV incentives with U.S. to avert tax-credit crisis: Trudeau

Source: · CTV NEWS · | December 13, 2021

Source: Prime Minister Justin Trudeau answers questions as and Minister of Families, Children and Social Development Karina Gould listens during an announcement on early learning and child care in New Brunswick, in Ottawa, on Monday, Dec. 13, 2021. THE CANADIAN PRESS/Justin Tang

OTTAWA -- Prime Minister Justin Trudeau says Canada would 'align' its own electric-vehicle incentives with those south of the border if Canadian-built cars and trucks could be made eligible for proposed U.S. tax credits.

Trudeau says the two countries have been building cars together for more than 50 years -- an alliance threatened by President Joe Biden's efforts to boost sales of vehicles made in the U.S. with union labour.

Deputy Prime Minister Chrystia Freeland and Trade Minister Mary Ng warned Congress last week of retaliatory tariffs and other punitive measures if the tax-credit proposal becomes law.

In a letter released Friday, Freeland and Ng proposed making Canadian-assembled vehicles and batteries eligible under the U.S. plan, which would be worth up to US$12,500 in tax credits to a would-be car buyer.