вЂњWe donвЂ™t view it that way ,вЂќ Psaki told reporters. Speaking on behalf of the Biden administration, White House press secretary Jen Psaki defended the policy proposal. вЂњDo you really want to violate it in such a significant way so soon after its passage?вЂќ Freeland said. She said Trudeau told top Republicans and Democrats from the House and Senate on Wednesday that Canada is вЂњcertainвЂќ that the incentives, as currently formulated, would violate the USMCA. But it would allow Biden to deliver a tangible victory for organized labor, one of his major constituencies, as well as workers in Midwestern states like Michigan that will be crucial for his reelection.Д¬hrystia Freeland, TrudeauвЂ™s deputy prime minister, told reporters Wednesday that the proposal had the potential to become the вЂњdominant issueвЂќ in the Canada-U.S. That would disadvantage a number of foreign automakers, like Toyota, Volkswagen and Honda, which operate in nonunion states and have loudly opposed the measure.

The provision would provide consumer tax credits of $4,500 for electric vehicles made with union labor in the U.S., on top of other credits for the clean cars. вЂњWeвЂ™re going to talk at length about it, IвЂ™m sure.вЂќ вЂњWe donвЂ™t know what will happen in the Senate, but thereвЂ™s a lot of complicating factors,вЂќ Biden said when he was asked by reporters about the proposal. When Biden was asked about the electric car tax credit, he said it might not survive in Congress. Politico reported that the tensions between the вЂњthree amigosвЂќ overshadowed the first meeting of the North American leaders since 2016. вЂњWe very clearly underlined our position.вЂќ вЂњWe underlined to what point this would be a big problem for auto production in Canada,вЂќ Trudeau said at a news conference late Thursday after trio met. officials about the fallout of BidenвЂ™s electric vehicle proposal was a top objective during his two-day visit to Washington.

Canada and Mexico strongly oppose the electric-vehicle tax credit, which the countries warn would damage their auto sectors and undermine the new United States-Mexico-Canada trade agreement.

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