Japan and South Korea have called on the United States to ease restrictions on electric vehicles (EVs) tax credits, citing the adverse impact of the Inflation Reduction Act (IRA) on foreign automakers.
The IRA was signed into law by the Biden administration on Aug. 16. Japan said that certain provisions of the IRA would deter Japanese companies from investing in the EV market, thereby affecting investment and employment in the United States.
Japan was referring to provisions requiring EVs to be assembled in North America to qualify for tax credits, and battery minerals to be processed in the United States or in nations with which it has a free trade agreement, Kyodo News reported….