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Canada to U.S. on EV tax credits: 'No choice but to forcefully respond' if passed

Canada to U.S. on EV tax credits: 'No choice but to forcefully respond' if passed

CTV
Friday, December 10, 2021 09:11:06 PM UTC

Canada is threatening to take a hard line with the United States if senators approve President Joe Biden's controversial tax credits for electric vehicles. In a letter to key members of the U.S. Senate, Deputy Prime Minister Chrystia Freeland and Trade Minister Mary Ng are promising retaliatory tariffs on American products if the tax credit proposal becomes law.

In a letter to key members of the U.S. Senate, Deputy Prime Minister Chrystia Freeland and Trade Minister Mary Ng are promising retaliatory tariffs on American products if the tax credit proposal becomes law.

The letter says Canada is getting ready to publish a list of U.S. products it would be willing to target, including within -- but not limited to -- the auto sector.

The letter also threatens to hit the pause button on concessions to U.S. dairy producers under the U.S.-Mexico-Canada Agreement.

Freeland and Ng say Canada doesn't want to go down a "path of confrontation," noting the chance for the two countries to work together on promoting the growth of electric vehicles across North America.

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