Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Canadians Abroad
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Dealer Best Practices
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ferrari
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Fiat Chrysler
      • Jeep
      • Fiat
      • Lancia
      • Maserati
      • Ram
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • VinFast
    • Toronto Auto Show
  • Opinion
    • Blogs
  • Video
  • Podcasts
  • EVENTS & AWARDS
    • 2021 Auto News Canada All Stars
    • 2022 Canadians To Watch
    • Best Dealerships To Work For
    • Canada Congress
    • Retail Forum: Dealer Discussions
    • Leading Women Roundtables
    • Embracing Diversity Roundtable
  • Jobs & Classifieds
  • +MORE
    • IN THE DRIVER'S SEAT
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • PEOPLE ON THE MOVE
    • COMPANIES ON THE MOVE
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
    • PUBLISHING PARTNERS
MENU
Breadcrumb
  1. Home
  2. Trade and Tariffs
May 26, 2022 11:44 AM

Canada's transport minister was in Washington to fight proposed EV tax credit

Omar Alghabra says he reiterated Canada's opposition to President Joe Biden's original plan to put extra tax incentives on EVs built in the U.S.

The Canadian Press
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    The Canadian Press

    WASHINGTON — Transport Minister Omar Alghabra says he is detecting a positive "shift" in the Biden administration's approach to Canada following meetings in the U.S. capital, where he continued to rail against a proposed federal EV tax credit in that country.

    Alghabra spent Tuesday in Washington, D.C., with officials including U.S. counterpart Pete Buttigieg and senior White House adviser Mitch Landrieu.

    He says Russia's war in Ukraine has put a new frame around the administration's relationships with important trading partners, including Canada.

    Alghabra says he reiterated Canada's opposition to President Joe Biden's original plan to put extra tax incentives on electric vehicles assembled in the U.S.

    That version of the plan collapsed in December when Sen. Joe Manchin declared his opposition to Biden's US$2-trillion Build Back Better bill.

    Related Article
    Politics versus practicalities: the cross border battle over Biden's EV tax credits
    Ontario dealers association opposes proposed U.S. EV tax credit it calls 'discriminatory'

    The White House is working on a scaled-down version, but it remains unclear whether the tax credits, which Ottawa has warned would be a body blow to Canada's auto sector, will return in their original form.

    "There is, I think, a new frame for the conversations that are taking place in the U.S.," Alghabra said in an interview.

    "While I don't know what the future of the previous EV tax credit is in the U.S., I am hopeful that I think now we're entering into a new type of discussion."

    Manchin, the moderate Democrat from West Virginia who has emerged as a key vote in the evenly divided Senate, suggested recently that he would not support any measure that would harm Canada's auto industry.

    Manchin, who heads the Senate's energy and natural resources committee, hosted Jason Kenney when the Alberta premier testified in person on Capitol Hill earlier this month.

    The pair have become cross-border allies as the U.S. looks for ways to both combat inflation while reducing its dependence on fossil fuels from hostile regimes, while Kenney continues to prod the Biden administration to depend more on Canada for its short-term energy needs.

    After the May 17 hearing, Manchin said he expects the White House is still working on some sort of a program to encourage American consumers to buy more electric vehicles and ease U.S. dependence on gasoline.

    But he insisted that he wouldn't support any measure that would hurt automakers north of the border.

    "There's no way in the world that we're going to put that type of harm and allow that to happen," Manchin said. "My vote would never support that at all."

    Manchin and Kenney both voiced support for the idea of a more closely integrated Canada-U.S. energy "alliance." It would focus on the need for traditional energy in the short term, as well as reliable bilateral supply chains for the critical minerals so essential to the production of electric vehicles.

    Alghabra said the role Canada could play in buttressing U.S. supply chains for those minerals is also generating increased interest south of the border.

    "We have more of those critical minerals, and some types of the critical minerals that the U.S. doesn't have," he said.

    "There's a new sense of interest and intrigue about this new frame that I think maybe did not exist last year."

    RECOMMENDED FOR YOU
    U.S. EV tax credit applies to about 20 models — only one made in Canada — through this year
    Recommended for You
    bidenford1-MAIN_i.gif
    U.S. EV tax credit applies to about 20 models — only one made in Canada — through this year
    How one change to a U.S. EV tax credit likely saved Canada's auto sector
    How one change to a U.S. EV tax credit likely saved Canada's auto sector
    Generic EV Charging
    US electric-vehicle tax credit could break WTO rules, EU warns
    JaguarTCSRacingFormulaE
    Sponsored Content: Castrol ON and Jaguar Formula E Racing team-up to usher in a new era for electric vehicles
    Digital Edition
    Aug 2022 Issue Cover
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Now

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    1155 Gratiot Ave
    Detroit MI 48207

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ferrari
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Fiat Chrysler
          • Jeep
          • Fiat
          • Lancia
          • Maserati
          • Ram
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
        • VinFast
      • Auto Shows
        • Toronto Auto Show
      • Canadians Abroad
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Dealer Best Practices
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Video
    • Podcasts
    • EVENTS & AWARDS
      • 2021 Auto News Canada All Stars
      • 2022 Canadians To Watch
      • Best Dealerships To Work For
      • Canada Congress
      • Retail Forum: Dealer Discussions
      • Leading Women Roundtables
      • Embracing Diversity Roundtable
    • Jobs & Classifieds
    • +MORE
      • IN THE DRIVER'S SEAT
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • PEOPLE ON THE MOVE
      • COMPANIES ON THE MOVE
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION
      • PUBLISHING PARTNERS