Â鶹´«Ã½

Skip to main content

Canada should 'prepare for the worst' if Biden's Build Back Better Act passes with EV tax credit: Ng

Share

Canadians should “prepare for the worst†if U.S. lawmakers decide to greenlight President Joe Biden’s protectionist Build Back Better Act with the inclusion of the contentious electric vehicle tax credit, says International Trade Minister Mary Ng.

In an interview on CTV’s Question Period with Evan Solomon airing Sunday, Ng spoke about a letter she co-signed with Deputy Prime Minister Chrystia Freeland, which threatens retaliatory tariffs on the U.S. if the tax credit isn’t amended.

“What my hope is, is that we are not going to have to do this at all but what is really important is that Canada prepare for the worst,†she said.

Biden’s tax credit would give consumers up to $12,500 if they purchase a U.S. union-made electric vehicle.

The letter was sent to U.S. senate leadership late Friday evening, as another means to change the position of the Biden administration in favour of Canada’s auto sector.

It states that the tax credit as proposed, violates the American’s obligations under the United States-Mexico-Canada Agreement (USMCA) and is equivalent to a 34 per cent tariff on Canadian-assembled electric vehicles.

“We want to be clear that if there is no satisfactory resolution to this matter, Canada will defend its national interests, as we did when we were faced with unjustified tariffs on Canadian steel and aluminum,†it reads.

“In that regard, Canada will have no choice but to forcefully respond by launching a dispute settlement process under the USMCA and applying tariffs on American exports in a manner that will impact American workers in the auto sector and several other sectors of the U.S. economy.â€

Those tariffs could include suspending USMCA dairy tariff-rate quotas or delaying the implementation of copyright changes.

Ng said the government is working on a list of goods across a wide range of sectors, “over the next number of days†but will continue discussions with congressional leaders to sway them in the opposite direction.

She also stressed that resolving this issue is the “top priority†for Canada.

“The prime minister was very clear and communicated that to the president. The deputy prime minister, myself, my ministerial colleagues have communicated that to the Americans. We are actively working on finding a solution that can work for Canadian industry,†she said.

“But we have to be able to put the U.S. on notice that Canada is prepared to do this.â€

Vehicles are Canada’s second largest export. The credits would cost US$15.6 billion over 10 years and disproportionately benefit Detroit's Big Three automakers -- General Motors, Ford Motor Co. and Chrysler parent Stellantis -- because they all assemble their American-made vehicles in union-represented plants.

In an interview on CTV’s Power Play last Thursday, the new U.S. ambassador to Canada David Cohen reiterated that the Build Back Better Act is still a proposal.

“That proposal has not passed, it is subject to debate, it is subject to amendment and there is nothing to rescind at this point because the provision does not exist†he said.

With a file from Reuters

IN DEPTH

Opinion

opinion

opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster

A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?

opinion

opinion Don Martin: How a beer break may have doomed the carbon tax hike

When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.

CTVNews.ca Top Stories

Canadian musician Jacob Hoggard has been found not guilty of sexually assaulting a young woman in northeastern Ontario eight years ago. The former Hedley frontman had pleaded not guilty to sexual assault.

Police have arrested a Toronto woman in connection with three recent homicides and investigators say that they believe two of the victims may have been 'randomly targeted.'

The body of a British Columbia mountain climber has been located and recovered after the 39-year-old man was reported missing during a solo climb on Washington state's Mount Baker earlier this week.

A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.

A Saskatchewan man living in the United States has pleaded guilty to possessing child pornography after he unknowingly provided disturbing videos to an FBI agent he thought was a pedophile.

Local Spotlight

Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.

From the beaches of Cannes to the bustling streets of New York City, a new film by a trio of Manitoba directors has toured the international film festival circuit to much pomp and circumstance.

A husband and wife have been on the road trip of a lifetime and have decided to stop in Saskatchewan for the winter.

The grave of a previously unknown Canadian soldier has been identified as a man from Hayfield, Man. who fought in the First World War.

A group of classic car enthusiasts donated hundreds of blankets to nursing homes in Nova Scotia.

Moving into the second week of October, the eastern half of Canada can expect some brisker fall air to break down from the north

What does New Westminster's təməsew̓txʷ Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.

The last living member of the legendary Vancouver Asahi baseball team, Kaye Kaminishi, died on Saturday, Sept. 28, surrounded by family. He was 102 years old.

New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.

Stay Connected