Japanese Industry Minister Yasutoshi Nishimura expressed concern that a new U.S. law on tax credits for electric vehicles may violate international law, reports the Nikkei newspaper in Japan.
The Ministry of Economy, Trade and Industry confirmed Nishimura shared his concerns when he met with U.S. Commerce Secretary Gina Raimondo in Los Angeles this week.
In question is the new law that restricts tax credits for electric vehicles (EVs) to those assembled in North America. The new legislation ended credits for around 70% of the 72 models previously eligible for tax credits, reports the Alliance for Automotive Innovation.
According to the Biden Administration, just 20 models still qualify for tax credits of up to $7,500.
But the Alliance for Automotive Innovation reports the new restrictions on battery and mineral sourcing, price, and income caps, set to go into effect Jan. 1, will make all or nearly all EVs ineligible.
The Japan Automobile Manufacturers Association, a major Japanese auto lobby, reported in August that it too is concerned about the law and will closely monitor developments.