Deputy Prime Minister Chrystia Freeland and International Trade Minister Mary Ng said that if the U.S. proceeds with tax credits favouring U.S.-made electric vehicles, the government is prepared to publish a list of “retaliatory actions” across a number of sectors in the coming days, as well as which U.S. businesses will be impacted, according to a letter sent to several top U.S. officials. (The Logic)

Talking point: The government said it wants to avoid a “path of confrontation,” but said proposed EV tax credits in the Build Back Better Act are equivalent to a 34 per cent tariff on Canadian-assembled EVs. The letter also promises to launch a dispute-settlement process under the United States-Mexico-Canada Agreement, and could go as far as to suspend concessions in the trade agreement, like dairy tariff-rate quotas and copyright changes. Senate Majority Leader Chuck Schumer, a recipient of the letter, has said Senate Democrats will try to pass the wide-ranging bill before Christmas. Today before the letter’s release, Mexico’s ambassador to Canada said the two countries “see the next steps in a very similar way,” and will be united in their response to the U.S. bill.