Canada and Mexico have expressed concern about provision in the President Biden’s Build Back Better Bill giving tax credits of $3500 to domestically assembled EVs and $500 to EVs satisfying domestic content provisions starting in 2027.
“Senators said to me ‘Let me look into this a little further, let me do a little bit more research,'” Canadian Minister of Trade Mary Ng told Reuters on Friday. “This, of course, is not going to be solved overnight. There is a lot of work to do.”
Previously the Mexican Economy Minister, Tatiana Clouthier, said Mexico is analyzing a range of legal actions if the bill is approved as is.
“In the past we have imposed tariffs and we would have to do or propose something very important and strategic for those products, in those places where it hurts them … so that the consequences can be felt,” Clouthier told a news conference on Thursday.
According to Bloomberg in November EVs made up 7.2% of global car sales in 2021 up from 4.3% in 2020. North America is lagging behind in this market with 3% of 1H21 vehicle sales being electrified.