Canadian Prime Minister Justin Trudeau said Monday he has proposed harmonizing rebates with the United States for electric vehicles to avoid a trade conflict over Washington’s go-it-alone plan that risks gutting Canada’s auto sector.
His remarks followed threatened retaliatory tariffs on American goods and Ottawa’s suspension of parts of the landmark North American free trade agreement if Washington went ahead with electric vehicle tax credits for EVs made in US union shops.
“Canada and the United States have been making cars together for over 50 years now. Our supply chains are deeply integrated,” Trudeau told a news conference.
“That is why we are working very hard with the United States on getting them to understand that this proposed EV rebate for American-built cars only is not good obviously for Canada, but also not good for the United States,” he said.