The European Union has announced a proposal to amend the US EV tax credit to favor US-made content that could be discriminatory against European manufacturers and break Trade Organization rules. World Trade Organization (WTO), Related press reported on Thursday.
Part of the Inflation Reduction Act was passed by the Senate last week and is expected to pass the House of Representatives, Amendment rules would require electric vehicles to have battery packs with raw materials extracted or processed in a country with which the United States has a free trade agreement and with most components sourced from North America, in order to qualify. claim a tax credit of up to $7,500.
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European Commission spokeswoman Miriam Garcia Ferrer said: “The European Union is deeply concerned by this potential new transatlantic trade barrier. Related press. “We think it’s discriminatory, that it’s discriminatory against foreign manufacturers in relation to U.S. manufacturers.”
EU officials believe the tax credits are a strong incentive for electric vehicle buyers, and the requirements for sourcing materials and components for batteries benefit some of the most mineral-rich countries. regulation, putting EU companies at a disadvantage, according to the report.
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These requirements are just one aspect of the improved EV tax credit. It also included price and earnings caps, removed the 200,000-unit limit that some automakers exceeded, and divested point-of-sale credit a year later. Then there’s what consumers was requestedAccording to a recent study.
Democrats in Congress were looking for a bonuses made by unions, too, but largely because of resistance from Senator Joe Manchin – one of their own – now gone. President Biden originally suggested that retire existing gas eaters could also be part of efforts to reduce emissions — and it will likely avoid scrutiny from trade rules.
