Canada warns Build Back Better EV subsidies could spark trade war
A key U.S. trading partner warns electric vehicle subsidies included in the Build Back Better Act could spark a trade war.
Iowa U.S. Senator Chuck Grassley says he met with Canadian Minister of Finance Chrystia Freeland last week and learned trade relations between the two countries seem worse now than when Donald Trump was president.
“Ms. Freeland warned that the electric vehicle subsidies in Build Back Better that excluded Canada would start a trade war between the United States and Canada. She (also) warned that Canada would be forced to reciprocate by potentially suspending dairy access.”
And during a call with ag reporters Tuesday morning, Grassley pointed out dairy access was one of the main benefits to agriculture in the U.S. Mexico Canada Agreement.
“So it was quite shocking for me to hear this from her, that these subsidies would be more hostile than anything Trump had done while he was in office.”
But Grassley suggests Canada can breathe a sigh of relief following West Virginia Senator Joe Manchin saying he would vote against Build Back Better.