British Columbia Sun

Trudeau states he’s still worried about warnings to Canada’s auto sector

Key takeaways: 

  • Professionals state US tax credit for American-created electric cars would destruct Canadian vehicle production. 
  • Prime Minister Justin Trudeau pays attention as meets with U.S. President Joe Biden and Mexican President Andrés Manuel López Obrador in the East Room of the White House in Washington on Thursday.

Trudeau’s concern after DC talks: 

Prime Minister Justin Trudeau stated Thursday he pressed his U.S. equivalent to release a region of the pending $1.9-trillion social infrastructure act which can destroy the Canadian auto sector.

“We’re concerned,” Trudeau said in French at a press conference after the North American Leaders’ Summit. “This would be quite a problem for vehicle production in Canada. We stressed this with the Americans throughout our talks. They’ve heard us loud and clear.” Source – cbc.ca

At problem is a clause concealed in the Build Back Better Act, President Joe Biden’s project to invest hundreds of billions of dollars into social schemes and climate initiatives to aid juice the nation’s coronavirus recovery.

Also read: “I’m going to perish:” BC man recollects fear of being stuck in flood

To stimulate the nestling electric vehicle (EV) industry, the Democratic-controlled Congress is offering sizeable tax credits worth up to $12,500 US to purchasers of new electric vehicles — as long as those cars are produced by union labourers in the U.S.

Professionals accept the tax measure would be a key blow to the Canadian automotive sector, which is attempting to attract the latest investment as the industry changes away from internal combustion engines. The terror is that producers would move production from Canada to the U.S. to create cars that qualify for the liberal allocation. 

The scheme would prerogative cars produced in so-called “blue” states where unionized industries win, to the detriment of Ontario projects like GM’s Oshawa assembly, Ford’s factory in Oakville or the sprawling Chrysler service in Windsor. It would further strike U.S. car plants in “right-to-work” states where the United Auto Workers (UAW) union is a non-factor.

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