Canada criticizes proposed U.S. EV tax credit, says could harm auto sector

FILE PHOTO: A Kia Soul EV is plugged into a charging station during the second press day of the North American International Auto Show in Detroit, Michigan, January 13, 2015. REUTERS/Mark Blinch

WASHINGTON/OTTAWA (Reuters) - The Canadian government on Friday warned that U.S. legislative proposals to create new electric vehicle tax credits for American-built vehicles could harm the North American auto industry and run afoul of trade agreements, according to a letter seen by Reuters.

Canadian Trade Minister Mary Ng told U.S. lawmakers proposed credits if approved "would have a major adverse impact on the future of EV and automotive production in Canada, resulting in the risk of severe economic harm and tens of thousands of job losses in one of Canada’s largest manufacturing sectors. U.S. companies and workers would not be isolated from these impacts."