US Vice President Harris pledges to consult with South Korea on concerns about electric vehicle subsidies
TOKYO/SEOUL – U.S. Vice President Kamala Harris told the Prime Minister of South Korea on Tuesday that Washington will work to address Seoul’s concerns about the recently issued documents. tram (EV) subsidies could be detrimental to Asian carmakers.
$430 Billion “Inflation Reduction Act” enacted in August covers a range of priorities of US President Joe Biden, including investments to recover capital climate change and make Washington the world leader in the electric vehicle market.
Among the provisions of the law is a requirement that electric vehicles must be assembled in North America to qualify for the tax credit. The law also ends subsidies for other EV models and requires the percentage of key minerals used in those vehicles’ the battery from the United States or a U.S. free trade partner.
Harris, visiting Japan, met with Han Duck-soo of Korea and “emphasized that she understands (Korea)’s concerns regarding the Electric Vehicle Act’s tax incentives and that they are committed to it,” consultations will continue as the law is implemented,” the White House said.
A senior Biden administration official said extensive conversations have taken place within the US government on how to address South Korea’s concerns.
“She listened very carefully and made clear our commitment to working in the US government – US Trade Representative, Treasury Department – as we see it … to help solve the problem. that issue,” the official said.
Biden has sought to increase business with South Korea as part of an effort to increase jobs in US manufacturing industries and build a united front against China, which he sees as an economic rival. and the main ideology of the country.
South Korean officials see the new demands as a betrayal after South Korean companies agreed to make major investments and build factories in the US.
The heavily industrialized South Korea fears new subsidies will hamper Hyundai Motor Co and its Kia Corp subsidiary in the world’s biggest consumer market. Cars are Korea’s third-largest export.
(Reporting by Trevor Hunnicutt in Tokyo, and Soo-hyang Choi and Joyce Lee in Seoul; Editing by Clarence Fernandez and Kim Coghill)
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