TOKYO — Japanese Industry Minister Yasutoshi Nishimura expressed concern to his U.S. counterpart that a new U.S. law on tax credits for electric vehicles may violate international law, the Nikkei newspaper reported on Thursday.
The Ministry of Economy, Trade and Industry confirmed that Nishimura expressed concerns on the law when he met U.S. Commerce Secretary Gina Raimondo in Los Angeles on Wednesday, while Nishimura was taking part in the Indo-Pacific
Economic Framework talks, but gave no further details.
The law restricts tax credits for electric vehicles to those assembled in North America.
After President Joe Biden signed the legislation, credits for about 70 percent of the 72 models previously eligible ended, according to the Alliance for Automotive Innovation, an industry trade group.
The Biden administration said in mid-August that about 20 models still qualify for tax credits of up to $7,500.
The auto industry group said, however, that new restrictions taking effect Jan. 1 regarding battery and mineral sourcing and price and income caps will make all or nearly all EVs ineligible.
The Japan Automobile Manufacturers Association, a major Japanese auto lobby, said last month it was concerned about the law and would keep a close watch on developments.
