A new plan to encourage Americans to buy electric vehicles made in North America, not just the United States, has cleared the tallest hurdle.
After a lengthy voting session that lasted nearly 24 hours, the US Senate has finally approved her new Inflation Reduction Act of 2022.
US Vice President Kamala Harris had to break a 50-50 tie. This is a dramatically scaled-down version of President Joe Biden's signature, his $2 trillion US climate and social spending package.
The original proposal secured the richest tax credits for vehicles assembled by union workers in the United States. Experts say the plan would have brought the Canadian auto industry to its knees.
However, Senate Majority Leader Chuck Schumer agreed with Senator Joe Manchin of Virginia on a bill to extend credit to vehicles manufactured in Canada and Mexico pending West. reached.
The bill is expected to pass next week in the Democratic-controlled House of Representatives and head to the president's desk.
"It's been a long, tough and winding road, but we're finally here," Schumer said on Sunday when the outcome was no longer in doubt.
"I am confident that the Control Inflation Act will remain one of the defining legislative measures of the 21st century."
This bill puts his $369 billion into climate action, while capping drug costs for the elderly, Expand health insurance benefits and reduce deficits.
Climate action also includes incentives to build clean energy facilities such as solar panels and wind turbines, reduce pollution levels in minority communities, and expand greener factory and farm operations. I'm here.
Republicans, whose barrage of proposed amendments was cracked down from Saturday night through Sunday, framed their defeat as a victory for higher taxes, more inflation and continued reliance on foreign energy.
"Democrats are already robbing American homes through inflation," said Senate Minority Leader Mitch McConnell. "Now their solution is to rob American families again."
The tax credit also mandates a percentage of North American vital minerals in the batteries of covered vehicles. but is largely absent from US discussions. Critics say it will be years before consumers reap the benefits.
Significant win for Canadian auto industry
, the stakes were huge.
Flavio Volpe, president of the Auto Parts Manufacturers Association, stands by industry, the Ontario government, and Ottawa, US lawmakers and officials of the Biden administration.
"This is a cigar. Always a cigar," Volpe said when asked how he would mark the occasion.
“In a trade war, everyone else has moved on to the next issue of the day by the time it is officially over.
See | Prime Minister Trudeau announces EV battery deal in July: Prime Minister Justin Trudeau was in Kingston, Ontario. He plans to announce a $1.5 billion contract to build an electric vehicle battery plant in his township, the Ontario Loyalist.
Senator Manchin has long supported the idea of excluding foreign automakers from EV incentives in a Senate resolution in states where Toyota is a major manufacturer. have been opposed. It wasn't clear until last week whether it would benefit Canada.
The surprising deal he struck with Schumer was the culmination of aggressive lobbying that began when Prime Minister Justin Trudeau visited the White House in November.
Only through the 2017-18 NAFTA negotiations, a high-stakes Trump-era negotiation that built a diplomatic waters strategy now known as "Team Canada," did federal officials It states that the range was competitive. approach.
It targets a wide range of US officials and lawmakers, with at least one face-to-face meeting between Manchin and Deputy Prime Minister Christia Freeland in recent months.
