Canada’s Trudeau falls short of U.S. electric vehicle tax credits, says Reuters will continue to push

By Steve Scherer

WASHINGTON (Reuters) – Canadian Prime Minister Justin Trudeau returned to Ottawa on Friday after failing to convince U.S. President Joe Biden to remove proposed tax credits for electric vehicles that would benefit U.S. manufacturers, but said he would continue to seek a solution.

Democrats in the U.S. House of Representatives approved it on Friday https://www.reuters.com/markets/us/us-house-vote-bidens-175-trillion-bill-after-hours-long-delay-2021-11-19 19 1, An $ 75 trillion investment bill, which includes tax credits, will be sent to the Senate, where negotiations will continue.

Canada fears the credit will undermine its efforts to produce electric vehicles (EVs) in Ontario, the country’s industrial hub, where General Motors Co. (NYSE :), Ford Motor (NYSE 🙂 Co. and Stellantis NV already assemble and plan cars and trucks. . electric pivot.

“Americans are well aware of Canada’s stance on this, and our concerns about it, and the threats it poses to our more than 50-year-old integrated car industry in our two countries,” Trudeau told reporters Thursday night after a Biden meeting. White House.

“There are several ways to resolve this,” Trudeau said without clarification, adding that Canada will continue to push for “solutions”.

Trudeau – to attend first meeting in Washington https://www.reuters.com/world/us-canada-mexico-set-donate-vaccines-unveil-new-methane-curbs-2021-11-18 United States, Canada and Mexican leaders met for five years – also with congressional leaders.

On Friday, Assistant Secretary of State for Western Hemisphere Affairs Brian Nichols kept the doors open for engagement.

“It’s clear that we have some differences of opinion on these issues,” he said. “But we have a great relationship … and we’ll work on all the issues we have.”

The tax credit issue was the first Trudeau explained at a solo meeting with Biden on Thursday, a government source said, and Canadian Finance Minister Chrystia Freeland warned on Wednesday that the tax credit risks becoming a major bilateral issue between the two countries. .

Canada says it would violate the new North American trade treatment rules or the USMCA (United States-Mexico-Canada) rules. He stressed on Thursday that the White House does not. Canada has stated that it would respond https://www.reuters.com/business/autos-transportation/exclusive-canada-would-respond-us-tax-credits-american-built-evs-minister-2021-11-04. tax credits are passed.

Trudeau said he discussed other contentious issues with Biden, such as the “Buy American” provisions and Michigan’s push to shut down Enbridge (NYSE 🙂 Inc.’s Line 5 oil pipeline, but found no solution.

The Canadian Chamber of Commerce said there was no “definitive victory for Canada,” and opposition from the Conservative Party said the failure showed that “Canada’s relationship with the United States has declined under Mr. Trudeau.”

Trudeau had a tough relationship with former President Donald Trump, once described as “literal and weak,” and he was the first world leader to congratulate Biden after being named the winner of the 2020 election.

But Biden’s https://www.reuters.com/article/canada-usa-trade-idAFL2N2O02V2 Trudeau, who helped in his first day in office, canceled an oil pipeline from Canada to the U.S. and Washington has announced plans to double its import taxes. He requested a panel discussion on Canadian timber and Canadian milk import quotas.