Steve Scherer

WASHINGTON (Reuters] – Canadian Prime minister Justin Trudeau is back in Ottawa after failing to convince President Joe Biden that he should scrap the proposed electric vehicle tax credits. These would have benefited U.S-based producers. But Trudeau stated that he would continue looking for a solution.

The U.S. House of Representatives voted late into the night in favor of Biden’s domestic investment bill of $1.75 trillion. It includes tax credits Canada is concerned will undermine its efforts to develop electric cars. It will now go to the Senate.

Trudeau said that the Americans were aware of Canada’s position and expressed concern about it. He also spoke out to reporters on Thursday night after meeting Biden at White House.

Trudeau spoke without explaning, saying that there are many solutions. Canada would not stop trying to help “find them”.

The House of Representatives will vote on a bill to address climate change and social spending. This includes a tax credit for electric vehicles made in the United States starting in 2027. Canadian companies claim this will reduce jobs and harm North American car industry integration.

Canada’s industrial center, Ontario in Canada is located close to U.S. automobile makers in Michigan or Ohio.

A government source claimed that Trudeau first raised tax credit issues with Biden during his Thursday meeting. Chrystia Freeland, Finance Minister, warned on Wednesday that it could be the main bilateral topic between the countries.

Canada asserts that Canada’s tax credit will violate the USMCA rules. However, the White House maintained that this is not true on Thursday. Canada stated that it would respond if tax credits were passed.

Trudeau, who visited Washington for the first meeting among the leaders of U.S. Canada, Mexico and Mexico in five year, stated that he spoke with Biden about other controversial issues such as his Buy American’ provisions, and Michigan’s attempt to stop Enbridge (NYSE.) Inc’s Line 5 oil pipe, but came up short.

Canadian Chamber of Commerce stated there had been “no decisive win for Canada” and Conservative Party opposition claimed that this failure was a sign of “Canada’s declining relationship with the United States.”

Trudeau was in a frosty relationship with Donald Trump’s former president. Trump called Trudeau once “dishonest, weak”, but he later praised Biden for his election.

Biden, however, canceled the pipeline connecting Canada and the U.S. which Trudeau had supported his first day as president. Washington announced plans for double duty on Canadian lumber imports and requested a dispute panel regarding Canada’s dairy import limits.