President Joe Biden reports being willing to continue talks with South Korea over U.S. legislation that denies tax subsidies to foreign makers of electric vehicles (EVs), reported an official from Yoon's office.
Biden assured South Korean President Yoon Suk-yeol in a letter, after Yoon asked the U.S. president to allay Seoul's concerns that the new U.S. rules would hurt South Korea's automakers last month.
" President Biden reaffirmed his understanding of our concerns through a personally signed letter .... it shows Biden's willingness to be considerate towards South Korean companies in the future," the official reported.
Under the terms of the Inflation Reduction Act, signed into law in August, EVs assembled in North America qualify for tax credits in the United States. The legislation prevents Hyundai Motor Co. and its affiliate Kia Corp. from receiving EV subsidies, as they do not yet manufacture EVs in the U.S.
Just around 20 EVs qualify for subsidies under the new rules, among them models from Ford Motor Co and BMW.