ut competitors and distort fair market competition. “Decisions that open the door to unfairly subsidized vehicles risk harming workers and manufacturers across North America,” a senior U.S. official said, adding that the matter would be raised through formal trade and diplomatic channels. Canada has defended its approach as part of a broader strategy to accelerate the transition to clean transportation and meet climate targets. Canadian officials emphasized that no final policy decision has been implemented and that consultations with industry stakeholders and international partners are ongoing. The dispute highlights the intensifying global battle over the electric vehicle market. Chinese manufacturers have expanded rapidly overseas, leveraging large-scale production, advanced battery technology, and aggressive pricing. In response, the United States has imposed steep tariffs and tightened regulations aimed at limiting Chinese EV imports, citing economic fairness and national security concerns. Trade analysts warn that policy divergence between Washington and Ottawa could strain the deeply integrated North American auto sector, where vehicles and components often cross borders multiple times during production. “Even modest policy shifts can have significant ripple effects in such an interconnected industry,” said one trade expert. Despite the sharp tone, both governments indicated a willingness to continue dialogue. Canada reiterated its commitment to strong economic ties with the United States, while U.S. officials stressed that cooperation remains possible if shared concerns are addressed. As the global transition to electric mobility accelerates, the outcome of this dispute could shape future trade relations and influence the competitive balance of the international EV industry. Source: Al Jazeera, Associated Press (AP)