Canada and Mexico strongly oppose the electric-vehicle tax credit, which the countries warn would damage their auto sectors and undermine the new United States-Mexico-Canada trade agreement
For Trudeau, warning U.S. officials about the fallout of Biden’s electric vehicle proposal was a top objective during his two-day visit to Washington.
Biden appeared unmoved when pressed on the tax credit issue by reporters ahead of his meeting with Trudeau. But the president offered some hope for the United States’ neighbors by hinting the controversial provision may struggle to survive. It’s still unclear whether Senate Democratic leadership will push to keep the EV credit in the reconciliation bill intact. Requests for comment to Majority Leader Chuck Schumer, Finance Committee Chair Ron Wyden, and Sen. Debbie Stabenow , the provision’s main sponsor, were not returned.
President Joe Biden, left, sits down for a meeting with Canadian Prime Minister Justin Trudeau, center, and Mexican President Andrés Manuel López Obrador, right, in the East Room of the White House in Washington on Nov. 18, 2021. | Susan Walsh/AP Photo Ebrard did not mention any discussions among the three leaders on the tax credit — nor did he mention any points of contention from the summit. Instead, he repeatedly emphasized that the meeting was positive, calling the summit “extraordinary” and noting a “good chemistry” between the leaders that “represents a new chapter in the relationship.” He also confirmed that the leaders agreed to meet again next year in Mexico City.
Chrystia Freeland, Trudeau’s deputy prime minister, told reporters Wednesday that the proposal had the potential to become the “dominant issue” in the Canada-U.S. relationship. She said Trudeau told top Republicans and Democrats from the House and Senate on Wednesday that Canada is “certain” that the incentives, as currently formulated, would violate the USMCA.
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