British Columbia Sun

Canada menaces U.S. with taxes, the partial lull of USMCA over electric-vehicle tax-credit

Canada

Key takeaways: 

  • Deputy PM Chrystia Freeland and International Trade Minister Mary Ng created the danger in a note to U.S. senators.
  • In a note to top U.S. senators, Deputy Prime Minister Chrystia Freeland and Trade Minister Mary Ng menaced to levy taxes on American goods and stop parts of the USMCA trade deal unless U.S. officials dump an offered electric vehicle tax credit. 

USMCA partially suspended as Canada menaces the US: 

Deputy Prime Minister Chrystia Freeland has reported to top U.S. senators intimidating to stop parts of the USMCA trade deal and levy taxes on American goods unless U.S. officials back away from an offered tax credit for American-built electric cars.

“We are deeply concerned that certain provisions of the electric vehicle tax credits as proposed in the Build Back Better Act violate the United States’ obligations under the United States-Mexico-Canada Agreement,” Freeland and International Trade Minister Mary Ng state in the note. Source – cbc.ca

“The proposal is equivalent to a 34 per cent tariff on Canadian-assembled electric vehicles,” the note states. “The proposal is a significant threat to the Canadian automotive industry and is a de facto abrogation of the USMCA.” Source – cbc.ca

Also read: Two men were apprehended for allegedly looting $45,000 value of packages

Canada threatens US with Tariff

Congress is offering sizeable tax credits worth up to $12,500 US to customers of the latest electric vehicles — as long as those cars are simulated by union workers in the U.S.

Specialists approve the tax action would deal a significant blow to the Canadian automotive sector, which is attempting to draw new investment as the industry transitions away from inner combustion engines.

In the note managed to Senate Majority Leader Charles Schumer and Senate Minority Leader Mitch McConnell — along with six other senators who pose on critical Senate committees — Freeland and Ng hone to the integrated nature of the North American automotive enterprise.

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