The U.S. arms of foreign automakers have criticized the union tax incentive. Tesla has also been critical, though it is strongly supported by the UAW.
Ng said that Canada is deeply concerned about the “protectionist elements” of the proposed tax credits, saying they discriminate against EVs and parts produced in Canada.
“Canada is also necessary for the U.S. to achieve its EV objectives in the future,” she wrote, adding that Canada is the only country in the Western Hemisphere that has all the critical minerals required to manufacture EV batteries.
Ng warned that the credits could “undermine the integrated nature of the North American automotive industry”.
She said the U.S. and Canadian automotive industries rely on each other for both finished vehicles and components, with total automotive trade averaging more than $100 billion a year.
