The Senate Democrats’ legislation limits clean-vehicle incentives to cars assembled in North America, containing critical minerals recycled in North America or sourced from U.S. free-trade agreement partners. (The Logic)

Talking point: It’s a boon for Canada, as a previous version would have limited tax credits to only EVs assembled in unionized U.S. factories. The new bill appeased Sen. Joe Manchin, who had opposed past EV credit packages, and automakers like Toyota and Tesla, which don’t have primarily unionized workforces. Global Automakers of Canada, of which Toyota Canada is a member, called it a “huge win,” while Canada’s Automotive Parts Manufacturers’ Association said it lifts the industry’s “largest single threat.” Unifor, the union representing workers at the largest Detroit-based automakers, criticized the elimination of an incentive favouring unionized factories, but said the legislation has Canadian workers breathing easier since they won’t be cut out of the U.S. market. Trade Minister Mary Ng said “Team Canada” had relentlessly advocated against the earlier bill after Prime Minister Justin Trudeau met with U.S. President Joe Biden, and that she will continue to advocate as the bill moves through Congress.