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Democrats push forward with EV tax credits – Roll Call

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Including an extra bonus for vehicles made by unionized American facilities could smooth over concerns among the big, traditional U.S. automakers and their Capitol Hill allies as they work through the transition from internal combustion engines to vehicles that come with electrical plugs.

But that approach quickly sparked trade concerns among other countries. Canada, for example, has been pushing hard on the issue and recently sent a letter to leading Senate Democrats and Republicans raising the prospect of an official dispute process under international trade agreements.

“In the coming days, we are preparing to publish a list of U.S. products that may face Canadian tariffs if there is no satisfactory resolution of this issue,” according to the letter. “While including the auto sector, our proposed retaliatory actions will extend across a number of sectors. At the same time, we intend to make clear which U.S. businesses and workers will be impacted.”

That letter was cited in a statement by Jennifer Safavian, CEO of Autos Drive America, a trade association representing international automakers such as Honda, BMW, Toyota, Mercedes-Benz, Hyundai and others.

“Strong international trade agreements are critical to the success of the U.S. auto industry and have been key to the expansion and growth of the auto sector in North America,” Safavian said. “The Senate must remove the discriminatory tax credit proposal around electric vehicles and provide a level playing field for all electric vehicles and all autoworkers.”



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