Shulou(Shulou.com)11/24 Report--

On August 12, the European Union and South Korea expressed concern about the proposed tax credit for electric vehicle purchases in the United States, saying it was "discriminating" against foreign-made cars and violating World Trade Organization (WTO) rules.

The US Senate passed a $430 billion inflation reduction bill last week, announcing that it would remove the $7500 cap on tax breaks for electric vehicles, but also imposed restrictions requiring battery components and key minerals to be purchased from North America.

"We think this is discriminatory, it discriminates against foreign producers compared to US producers and is not in line with WTO regulations," a spokesman for the European Commission said.

"We need to ensure that the measures introduced are fair and non-discriminatory," she added. we therefore continue to urge the United States to remove these discriminatory elements from the bill and to ensure that it is in full compliance with WTO provisions. "

South Korea's Ministry of Trade said in a statement that it had asked US trade authorities to relax battery components and car assembly requirements. Hyundai Motor and battery makers LG Energy Solution, Samsung SDI and SK held a joint meeting, and the South Korean companies asked for support from the South Korean authorities so that the bill would not put them at a competitive disadvantage in the US market.

South Korea has written to the US House of Representatives asking the US to include electric cars and battery components manufactured or assembled in South Korea within the scope of US tax breaks.

Korean Hyundai Motor

Hyundai Motor is disappointed, criticizing that the current legislation severely limits the use and choice of American electric cars and could greatly prevent the auto industry from transitioning to a sustainable direction.

The plan has sparked dissatisfaction not only in the European Union and South Korea, but also in the United States. Some carmakers said last week that most electric models would not be eligible for a tax credit because battery components and key minerals were required to be purchased from North America.

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