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

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.

Trudeau’s comments, however, suggest Canada could offer a comparable package that would apply to vehicles assembled in either country.

The federal government is already planning to retool its existing rebate program, which only applies to new zero-emission vehicles with a maximum base price of between $45,000 and $55,000.