Prime Minister Justin Trudeau has announced that Canada would ‘align’ its electric-vehicle (EV) incentives with those proposed under U.S. President Joe Biden’s Build Back Better Act, only if the U.S. expands those credits to Canadian-built vehicles (via Tesla North).
President Biden’s bill proposes tax credits of up to $12,500 USD for EVs, but $4,500 of that total will only be available to vehicles assembled in the U.S. by a unionized workforce. This locks American automakers with non-unionized workforces like Tesla and neighbouring countries Canada and Mexico.
Deputy Prime Minister Chrystia Freeland and Trade Minister Mary Ng warned Congress last week of retaliatory tariffs, and also proposed finding a way to make Canadian-assembled vehicles and batteries eligible for the proposed incentives down south.
Trudeau’s comments have indicated a willingness to take it one step farther by matching Biden’s proposed rebates of up to $12,500 USD, and the Canadian package will likely apply to vehicles assembled in either country.
Currently, Canada’s iZEV program only applies to new EVs with an MSRP between $45,000 and $55,000 CAD.