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Japan Complains to US Over EV Tax Credit Law – Nikkei

Japan’s industry chief warned US officials its new rules restricting tax credits to EVs assembled in North America could be illegal

Japan's Minister in charge of economic revitalisation and measures for the novel coronavirus pandemic Yasutoshi Nishimura attends a news conference in Tokyo, Japan, September 16, 2020. REUTERS/Kim Kyung-Hoon
Japan's Japan’s industry minister Yasutoshi Nishimura at a news conference in Tokyo, Japan. Photo: Reuters


Japan’s industry minister has warned the US that a new law on electric vehicle tax credits may violate international law, the Nikkei reported on Thursday.

The Ministry of Economy, Trade and Industry confirmed that Yasutoshi Nishimura had expressed his concerns over the law when he met US Commerce Secretary Gina Raimondo in Los Angeles on Wednesday, at the Indo-Pacific Economic Framework talks.

The law restricts tax credits for electric vehicles to those assembled in North America.


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After President Joe Biden signed the legislation, credits for about 70% of the 72 models that were 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 that will take effect on January 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.


  • Reuters with additional editing by Sean O’Meara


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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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