An agreement between authorities in the European Union and those in the U.S. could see European-made EVs receive the same federal tax credits as those locally produced in North America.
President Biden’s Inflation Reduction Act has ruffled feathers across the automotive industry. It stipulates that EVs need to be built in North America to receive a $7,500 tax credit and that they must have batteries comprised of at least 40 per cent of materials sourced in North America or from a U.S. trading partner.
European Commission vice president Valdis Dombrovskis recently held talks with U.S. Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo, and Treasury Secretary Janet Yellen on the issue, Reuters reports. The European Union believes the act is discriminatory against its producers.
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