Int’l opposition mounts over proposed US EV tax credit

The European Union, Germany, Canada, Japan, Mexico, France, South Korea, Italy and other countries wrote US lawmakers saying a proposed US electric vehicle tax credit violates international trade rules, according to a joint letter made public Saturday.

A group of 25 ambassadors to Washington wrote US lawmakers and the Biden administration late Friday saying “limiting eligibility for the credit to vehicles based on their US domestic assembly and local content is inconsistent with US commitments made under WTO multilateral agreements.”

The US Congress is considering a new $12,500 tax credit that would include $4,500 for union-made US electric vehicles and $500 for US-made batteries. Only US built vehicles would be eligible for the $12,500 credit after 2027, under a House proposal released this week.

Canada and Mexico have issued separate statements in the last week opposing the plan.The US State Department declined to comment Saturday and the White House did not immediately respond to a request for comment.

A dozen foreign automakers wrote California’s two senators on Friday urging them to abandon the plan that they said would discriminate against the state.