No one, it seems, saw it coming - not even the federal government in Ottawa.
With time running out, Washington had all but given up on President Joe Biden's climate agenda, with two of the Senate's most powerful Democrats - Chuck Schumer, the majority leader, and West Virginia swing-vote moderate Joe Manchin - at an impasse.
All that changed late Wednesday when the pair unveiled a pared-down, $700-billion version of the Biden spending package, complete with an unexpected Christmas-in-July present for Canada: no more Buy American tax credits for electric vehicles.
Instead, Schumer and Manchin's amendment would extend the richest of those incentives to vehicles assembled in North America, rather than just the U.S., and also prioritize EVs with battery materials produced by the country's free trade partners.
“We thought Manchin, by having put a fork in it 10 days ago, that it was basically done,†said Canada-U.S. expert Eric Miller, president of the D.C.-based Rideau Potomac Strategy Group.
“But the thing is, the guy made the deal, and that's where we are. His hearing on Canadian energy policy, where he brought down Jason Kenney and Jonathan Wilkinson and others, and all the lobbying that Canada has done, paid off.â€
Manchin, chairman of the Senate energy and natural resources committee, hosted the Alberta premier for a hearing in May that focused heavily on discussions around energy security, the oilsands and the thorny issue of cross-border pipelines.
But it also lingered on the subject of critical minerals, the mission-critical ingredients of long-range batteries, and Canada's potential role in helping the U.S. challenge Chinese dominance in that sector amid the coming electric-vehicle revolution.
After that hearing, Manchin sent the clearest public signal to date that Canada's all-out lobbying effort to kill the tax credit scheme might be about to pay off.
“There's no way in the world that we're going to put that type of harm and allow that to happen,†he said when asked whether he'd support Biden's tax credits in their original form.
“My vote would never support that at all.â€
Ever since Biden sat down with Prime Minister Justin Trudeau at the White House last November, Ottawa has been engaged in a diplomatic full-court press against the measure, Trade Minister Mary Ng said in an interview Thursday.
“It's really been a Team Canada approach, because it's that important,†Ng said.
“We're very encouraged by this recognition of the tightly integrated Canada-U.S. supply chain, particularly as it relates to making vehicles and the future of vehicles, which are going to be green and electric vehicles. That is terrific.â€
Ng refused to say directly whether the news came as a surprise, but government officials in Ottawa quietly acknowledged Thursday they didn't see it coming - and that some of the U.S. counterparts they contacted for confirmation were just as taken aback.
The yearlong lobbying effort, which included provincial leaders as well as industry stakeholders, was rivalled in scope only by the 2017-18 NAFTA talks, the high-stakes Trump-era negotiation cauldron that forged the original “Team Canada†concept.
It targeted a wide array of U.S. officials and lawmakers, including both Schumer and Manchin, and involved at least one face-to-face meeting in recent months between the West Virginia senator and Deputy Prime Minister Chrystia Freeland.
“I am very pleased to see that our message has been heard and is reflected in the draft legislation,†Kirsten Hillman, Canada's ambassador to the U.S., said in a statement late Wednesday.
Canada has been “relentless†in its efforts to convince Congress and the White House to abandon a plan “that discriminates against Canada and fractures the highly successful integration of our auto sector,†Hillman said.
“We have all brought the facts to the table.â€
The White House insisted Thursday that Biden supports the new version of the bill, even though the tax credits no longer favour vehicles assembled in the U.S.
“This is a once-in-a lifetime opportunity,†press secretary Karine Jean-Pierre said when asked directly about the new EV incentives.
“This is going to be a game changer for many Americans, and so he supports this piece of legislation and he wants to see it pass so he can sign it.â€
Biden himself briefly raised Canadian eyebrows when he said the incentives would apply “if those vehicles were made in America,†but White House officials insisted they would not exclude Canadian or Mexican-built vehicles.
Across the board, Canada greeted the news with muted optimism - a prudent approach, given the superheated political atmosphere of Congress, said Louise Blais, a retired Canadian diplomat who served as ambassador to the UN and consul general in Atlanta.
“We shouldn't assume necessarily that this is going to be a walk in the park,†said Blais, who now serves as a special adviser to the Business Council of Canada.
Democrats, all but written off two months ago in the face of spiralling inflation and Biden's dismal approval ratings, appear to have found a second wind heading into November's midterm elections, and their rivals will likely be loath to help.
“The Republicans, obviously, will be very reluctant to give a win. But at the same time, there is a sense that there's a lot of pro-business, pro-jobs components that are included in this bill that would be very, very attractive to many senators for what it would mean in their own states.â€
Manchin and Schumer say the Inflation Reduction Act of 2022, which includes a raft of spending on climate and energy projects, deficit reduction, prescription drugs and health-care premiums, will help the U.S. slash carbon emissions by 40 per cent by 2030.
“This is a great example of how to elevate critical bilateral issues with the Americans and deliver results by focusing on solutions that benefit them,†said Flavio Volpe, president of the Toronto-based Auto Parts Manufacturers' Association.
“When the U.S. targets Canadian industrial capacity, especially in electric vehicle production, lawmakers are handicapping their own country's capacity to compete with China.â€
Meanwhile, experts are urging the federal government to consider what else the legislation could mean for Canadian competitiveness and attracting foreign direct investment.
The package includes $369 billion for emissions reduction measures, much of it earmarked for manufacturers directly, Blais said. Combined with long-standing state and regional incentives, the big kid on the block could be about to get a whole lot bigger.
“When it comes to attracting manufacturing, we are in some ways in a competition; there's no doubt about that,†she said.
“When you layer on that federal investment - it's billions of dollars we're talking about - then I think Canada should be paying a great deal of attention to how that's going to change our ability to attract investment.â€
This report by The Canadian Press was first published July 28, 2022.
U.S. forecasters are warning of destructive waves, devastating winds and flash floods through the week as Hurricane Milton makes its way from the Yucatan Peninsula toward Florida.
A seasoned American meteorologist became emotional on air as he gave an update on a major hurricane, later suggesting the reason behind his strong reaction.
An American family doctor is frustrated with what she says has been a challenging two-year-and-counting bureaucratic journey to be accepted into Canada.
Emotions boiled over after a judge acquitted two out of three defendants in a manslaughter case, while the third accused has since died.
As U.S. regulators push for an investigation into what they call 'deadly baby and toddler products' from foreign e-commerce sites, health officials in Canada say they haven't determined whether any laws or regulations have been broken.
Elections BC is reissuing new 'where to vote' cards to some residents after an administrative error mistakenly recommended voting places that were farther from homes than necessary.
In his column for CTVNews.ca, former NDP leader Tom Mulcair argues that the dramatic side to Conservative Leader Pierre Poilievre, and his tendency to 'play everything to the hilt,' could well become his undoing.
Baby Boomers may be expected to live longer than their predecessors, but a recent study has found that they are more likely to suffer from worse health than previous generations.
A Toronto senior says she can’t believe that two roofers took advantage of her, despite knowing she was recently widowed and suffering from a painful disability.
An American family doctor is frustrated with what she says has been a challenging two-year-and-counting bureaucratic journey to be accepted into Canada.
Elections BC is reissuing new 'where to vote' cards to some residents after an administrative error mistakenly recommended voting places that were farther from homes than necessary.
A Toronto senior says she can’t believe that two roofers took advantage of her, despite knowing she was recently widowed and suffering from a painful disability.
A Saskatoon mom is desperately fighting eviction after she discovered mould in her suite and reported it to her landlord.
Police arrested a man accused of setting an animal on fire in Orillia, Ont. last month.
The federal government announced 14 new properties will be added to the Canada Public Land Bank, the list of federal properties that could be turned into new homes, including seven in Ottawa and two in Gatineau, Que.
A former New York City official was charged Tuesday with witness tampering and destroying evidence in a federal investigation that led to Mayor Eric Adams' bribery indictment. The arrest came amid yet more high-profile exits from Adams' administration.
Britain is facing a "staggering rise" in assassination attempts on U.K. soil by Russia and Iran, as the hostile states recruit criminals to "do their dirty work" for them, the head of the U.K.'s domestic intelligence agency said Tuesday.
A German court on Tuesday acquitted a man who is also under investigation in the 2007 disappearance of British toddler Madeleine McCann in a trial on charges of unrelated sexual offences.
A seasoned American meteorologist became emotional on air as he gave an update on a major hurricane, later suggesting the reason behind his strong reaction.
Kamala Harris called Donald Trump 'incredibly irresponsible' for spreading falsehoods about the federal response to Hurricane Helene's destruction, offering especially sharp words as a new storm bears down on Florida with just weeks until Election Day.
A World Health Organization official warned on Tuesday of disease outbreaks in Lebanon due to crowded conditions in displacement shelters and hospital closures as medics have fled Israel's assault.
A federal inquiry into foreign interference is slated to hear today from current and former officials of Public Safety Canada.
In his column for CTVNews.ca, former NDP leader Tom Mulcair argues that the dramatic side to Conservative Leader Pierre Poilievre, and his tendency to 'play everything to the hilt,' could well become his undoing.
Conservative Leader Pierre Poilievre is supporting Israel's right to defend itself against Iran following last week's ballistic missile attack, saying that right includes 'proactively striking Iranian nuclear sites and oil installations to defund the terrorist regime.'
The Ontario government has lowered the age for regular mammogram breast screening to allow all woman between the age of 40 and 49 to self-refer for the service.
An American family doctor is frustrated with what she says has been a challenging two-year-and-counting bureaucratic journey to be accepted into Canada.
AI scribe technology holds the promise of removing some of that burden. However, uptake in Canada has been low due to privacy and cost concerns.
A British-Canadian researcher has won the Nobel Prize in physics for work developing the foundations of machine learning and artificial intelligence. The University of Toronto's Geoffrey Hinton was awarded the prize Tuesday morning, along with Princeton University researcher John Hopfield.
The best minds in science will be thrust from academic obscurity into the spotlight this week when the Nobel Prizes in physics, chemistry, and physiology or medicine are announced. However, there is no shortage of Nobel-worthy discoveries: Here are five breakthroughs that haven't resulted in a life-changing call from Stockholm — at least not yet.
A spacecraft blasted off Monday to investigate the scene of a cosmic crash.
An elevator mechanic mistakenly threw out a piece of artwork, made to look like empty beer cans, assuming it was litter, a Dutch museum revealed earlier this month.
The "Star Trek" star, Chris Pine, has a new children's book out, titled "When Digz the Dog Met Zurl the Squirrel: A Short Tale About a Short Tail."
Cissy Houston, the mother of the late Whitney Houston and a two-time Grammy winner who performed alongside superstar musicians like Elvis Presley, and Aretha Franklin, has died. She was 91.
A new report from the Canadian Chamber of Commerce is sending a stark warning ahead of the U.S. presidential election, saying protectionist policies like Donald Trump's proposed tariffs could damage economies on both sides of the border.
Inflation and higher interest rates have eroded Canadians' purchasing power since 2022, particularly for lower-income households, a new report from the parliamentary budget officer has found.
A Toronto senior says she can’t believe that two roofers took advantage of her, despite knowing she was recently widowed and suffering from a painful disability.
When it comes to raising a child, the majority of fathers say they share tasks equally, but fewer mothers tend to say the same thing, according to a Statistics Canada survey.
Gerontologist Jay Olshansky is used to backlash about his views on human longevity. Decades ago he and his coauthors predicted children, on average, would live to only age 85 — only 1 per cent to 5 per cent might survive until their 100th birthday.
'Eat more vegetables,' doctors and dietitians say over and over. But for many people, it’s hard to do, because they aren’t excited about veggies or just don’t like them.
New York Jets owner Woody Johnson made the stunning decision Tuesday to fire Saleh five games into his fourth season after the team's 2-3 start following a 23-17 loss to Minnesota in London on Sunday.
FIFA banned Italian soccer player Marco Curto for 10 games for making a discriminatory remark at South Korea forward Hee Chan Hwang in a preseason game between Como and Wolverhampton.
A former WWE employee who filed a lawsuit against the company and ex-leader Vince McMahon, accusing him of sexual battery and trafficking, is asking them to not enforce nondisclosure agreements with other former and current employees and contractors so they can potentially come forward with similar accusations.
New data from the Insurance Bureau of Canada (IBC) shows that even though claims for auto theft dropped in the first half of 2024 compared to their 2023 peak, the rates of reported theft remain well above those of years prior.
Tesla is recalling more than 27,000 Cybertrucks because the rearview camera image may not activate immediately after shifting into reverse, the fifth recall for the vehicle since it went on sale late last year.
A Pickering, Ont., student going to college to be a mechanic is shocked the engine in his two-year-old car will not be repaired under warranty after the dealership claimed he had been 'over-revving' the engine.
A B.C. couple is getting desperate – and creative – in their search for their missing dog.
Videos of a meteor streaking across the skies of southern Ontario have surfaced and small bits of the outer space rock may have made it to land, one astronomy professor says.
A unique form of clouds made an appearance over the skies of Ottawa on Sunday evening.
Bernie Hicks, known as the ‘Batman of Amherst,’ always wanted to sit in a Batmobile until a kind stranger made it happen.
Bubi’s Awesome Eats, located on University Ave West took to social media to announce the closure on Friday.
Weeneebayko Area Health Authority and the Government of Ontario have awarded a $1.8 billion fixed-price contract to design, build and finance a new Far North hospital.
Manitobans are in cleanup mode after intense winds barreled through southern parts of the province this weekend.
Avry Wortman, 13, scored two touchdowns on Sunday during her team's win in the under 14 Greater Moncton Football Association.
A gargantuan gourd – affectionately named ‘Orangina’ by the urban gardeners who grew it in the front yard of their Vancouver home – earned the massive honour of being named B.C.’s heaviest giant pumpkin Saturday.
Vancouver Fire Rescue Services were called to a blaze affecting multiple houses on the 1000 Block of East Pender St.
Elections BC is reissuing new 'where to vote' cards to some residents after an administrative error mistakenly recommended voting places that were farther from homes than necessary.
Western Forest Products Inc. says it is temporarily curtailing lumber production due to market challenges.
A Toronto senior says she can’t believe that two roofers took advantage of her, despite knowing she was recently widowed and suffering from a painful disability.
The Ontario government has lowered the age for regular mammogram breast screening to allow all woman between the age of 40 and 49 to self-refer for the service.
Convenience stores in Ontario will soon be permitted to sell fortified wines like port and sherry, Â鶹´«Ã½ has learned.
Calgary police are investigating after several shots were fired in the northeast community of Saddle Ridge.
Calgary's police chief said a tribunal that looked into the conduct of Const. Mike Oakey evaluated all the evidence and made the determination he would not be fired or criminally charged.
A home in the southeast Calgary community of Deer Ridge was destroyed in a fire and while a woman and her children living there escaped safely, two of their pets perished.
An Ottawa man who stabbed his estranged wife to death in an attack that also injured his daughter in Ottawa's west end has been found guilty of first-degree murder and attempted murder.
The federal government announced 14 new properties will be added to the Canada Public Land Bank, the list of federal properties that could be turned into new homes, including seven in Ottawa and two in Gatineau, Que.
The aurora borealis was visible in Canada and the northern United States Monday night and Tuesday morning. Photos sent to CTV Ottawa and posted on social media showed the northern lights visible over Ottawa around 10 p.m. Monday and 1 a.m. Tuesday.
Quebec coroner Géhane Kamel will preside over a public enquiry into the deaths of Léonor Geraudie, 43, and her seven-year-old daughter Vérane, who were killed in a fire in a heritage building in Old Montreal on Oct. 4 that also left two people injured.
Montreal police (SPVM) arrested a 15-year-old in connection with an alleged arson in Saint-Leonard that occurred on the weekend.
Swedish battery manufacturer Northvolt said on Tuesday that one of its entities had filed for bankruptcy with a Stockholm court due to its financial situation.
The upper ridge continues to dominate the weather pattern over Alberta.
Edmonton's transit system is seeing record usage, with six million trips taken in September.
Baby Boomers may be expected to live longer than their predecessors, but a recent study has found that they are more likely to suffer from worse health than previous generations.
Police in New Brunswick are trying to track down a man they consider “armed and dangerous†after he allegedly crashed a vehicle, waved a weapon at police, and fled in a stolen vehicle.
Todd Joseph Gallant pleaded not guilty to the murder of Byron Carr in a Prince Edward Island courtroom on Tuesday.
The Nova Scotia RCMP arrested three youths in connection to threat complaints at an Antigonish university last week.
Manitoba health-care support workers will not be hitting the picket line on Tuesday morning.
Manitoba RCMP and the Winnipeg Police Service are launching a most-wanted website.
To get between Churchill, Manitoba, Canada -- the polar bear and beluga whale capital of the world and a tourist hot spot for northern adventure tourism -- and Winnipeg, Manitoba, there are only two options: A $1,100 one-way plane flight that takes two-and-a-half hours or a scenic 45-hour to 49-hour much cheaper train ride.
Those in Saskatchewan gazing at the stars Monday night were treated to a brilliant display of northern lights – as a solar storm continues to bear down on the northern hemisphere.
Regina resident Murray Yagelniski says a city-owned tree on his property is the root of the issue behind his basement flooding.
The Saskatchewan NDP says the province's troubled payment and scheduling system for healthcare is only half implemented and has costed taxpayers nearly triple its original price tag so far.
Fire crews were called to respond to Mohawk Plaza shortly before 2 a.m. Tuesday.
Police say they received a 911 call from the involved pilot around 11:20 a.m. after they had crash-landed in a farm field near Newry Road.
In September, Â鶹´«Ã½ Kitchener reported on Sandvine's deals with autocratic governments, including Egypt, where its tech reportedly helped inject spyware into the devices of government critics.
A Saskatoon mom is desperately fighting eviction after she discovered mould in her suite and reported it to her landlord.
Saskatoon’s Prairie Harm Reduction (PHR) says a staff member arrived to work on Thursday morning to find someone at its doorstep, unresponsive from a suspected drug overdose.
Those in Saskatchewan gazing at the stars Monday night were treated to a brilliant display of northern lights – as a solar storm continues to bear down on the northern hemisphere.
A teacher working on a First Nation in northwestern Ontario has been charged with sexually assaulting a minor.
The North Bay Battalion hockey team is mourning the loss of a former player who died at 23 after a battle with cancer.
A Toronto senior says she can’t believe that two roofers took advantage of her, despite knowing she was recently widowed and suffering from a painful disability.
U.S. forecasters are warning of destructive waves, devastating winds and flash floods through the week as Hurricane Milton makes its way from the Yucatan Peninsula toward Florida.
A 20 year old is charged with two counts of fail or refusal to comply with demand made by peace officer cause bodily harm, two counts of dangerous operation causing bodily harm, two counts of impaired operation cause bodily harm and transport cannabis
Police in Woodstock have charged the driver of a black Volkswagen Jetta after it was seen leaving the scene of a crash. Around 5:20 p.m. on Monday, police were called to the scene of a two-vehicle crash at the intersection of Dundas Street and Waterloo Street.
Police arrested a man accused of setting an animal on fire in Orillia, Ont. last month.
One person suffered serious injuries in a collision in Caledon Monday afternoon.
One person was rescued after being trapped in a vehicle that was involved in a multi-car crash in Orillia late Monday afternoon.
Essex County OPP say a 17-year-old Leamington driver was caught going 101 kilometres per hour over the posted speed limit.
AM800 CKLW has announced a new morning show co-host.
Delays are to be expected Tuesday morning after a crash in Essex County. According to OPP, the crash happened at Walker Road and Highway 3 in Tecumseh.
The leaders of B.C.'s three main political parties will be facing off Tuesday evening for their first and only televised debate ahead of the Oct. 19 election. Here's what viewers can expect.
Elections BC is reissuing new 'where to vote' cards to some residents after an administrative error mistakenly recommended voting places that were farther from homes than necessary.
Western Forest Products Inc. says it is temporarily curtailing lumber production due to market challenges.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
NDP Leader David Eby is promising to offer a $75-million loan forgiveness program to entice doctors, nurses and heath professionals to expand health-care services in rural British Columbia.
Three young suspects have been arrested in connection with a swarming attack on a teenager in B.C.'s Okanagan last week – and authorities have asked the public to stop circulating disturbing videos of the incident.
A Lethbridge police officer involved in a scandal involving former Lethbridge New Democrat MLA Shannon Phillips has been reprimanded.
Lethbridge police say a man who escaped from a psychiatric ward at the Chinook Regional Hospital has been found.
While the summer may be over, construction season in Lethbridge is not.
A woman in Greater Sudbury, Ont., said "It doesn't get more Canadian than this" when she spotted a black bear dumpster diving at a Tim Horton's last month.
The Federation of Northern Ontario Municipalities (FONOM) is the latest organization to call on the Doug Ford government to re-open dialogue with an airline service that transports lower-income Canadians to crucial medical care far from home.
For decades, Mississauga First Nation has known that human remains from their land were at the Canadian Museum of History.
As millions in federal funding flow into a Labrador group whose claims of Inuit identity have been rejected by Indigenous organizations across Canada, a national Inuit leader worries the Liberal government is putting the rights of Indigenous Peoples at risk.
He may not have logged the fastest time or even gone the full distance, but residents of a Newfoundland town agree the goat who unexpectedly joined the local weekend half marathon was the event's undisputed champion.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
The Shopping Trends team is independent of the journalists at Â鶹´«Ã½. We may earn a commission when you use our links to shop. Read about us.
