Dem Deal Subsidizes Electric Cars Made in Mexico, Canada

A Democrat deal, agreed to by Senate Majority Leader Chuck Schumer (D-CA) and Sen. Joe Manchin (D-WV), subsidizes electric vehicles made in Canada and Mexico — gutting the “Buy American” rules initially included in the legislation.

The Democrats’ “Inflation Reduction Act,” estimated to eliminate about 30,000 jobs in the United States, is set to be a major win for Mexico and Canada’s auto industries as well as the multinational corporations that outsource U.S. auto jobs to each of the countries.

A provision originally included in the legislation initially gave thousands in tax credits to American consumers buying electric vehicles that are made in the U.S. Though the credits go directly to consumers, they are a boon for automakers as they subsidize sales.

The goal, as with most Buy American rules, was to pressure automakers to reshore auto manufacturing to the U.S. and open state-of-the-art electric vehicle plants.

That provision, though, was changed to ensure…

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