The Inflation Reduction Act (IRA) has been the law of the land for less than two weeks, but it’s already harming relations between the United States and its allies.
On Aug. 10, South Korea’s Ministry of Trade, Industry, and Energy (MOTIE) sent a letter to the U.S. Trade Representative, stating that certain sections in the IRA possibly violated a Korea-U.S. Federal Trade Agreement and World Trade Organization (WTO) rules.
However, the Biden administration chose to ignore South Korea’s concerns and signed the IRA into law on Aug. 16, ending tax credits for electric vehicles (EV) without final assembly in North America–one of the provisions South Korea listed as a trespass….