How Canada could retaliate if tariff-like U.S. electric car policy goes ahead

November 22, 2021

A new U.S. government plan that would offer tax credits for electric vehicles and batteries made by unionized labour in the United States puts Canada in a difficult position, according to both Canadian environmentalists and trade experts.

Part of the "Build Back Better" plan passed by Congress at the end of last week, it gets a thumbs up from many battling climate change on both sides of the border.

Offering an effective $12,500 US subsidy if American residents buy an electric vehicle rather than one with a traditional engine, the move is considered a positive step toward coaxing gas-powered vehicles — and their emissions — out of the market.

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