Tokyo sounds alarm over US EV tax credits


FILE PHOTO: The cab to a Ford all-electric F-150 Lightning truck prototype is seen on an automated guided vehicle (AGV) at the Rouge Electric Vehicle Center in Dearborn, Michigan, U.S. September 16, 2021. REUTERS/Rebecca Cook

TOKYO: Japan’s government warned on Saturday that new electric vehicle (EV) tax credits in the United States could ultimately deter further investment by the Japanese there and hit employment in the world’s biggest economy.

In a comment submitted to the US Treasury Department, the government raised a number of concerns about the tax credits in the Inflation Reduction Act (IRA), which is designed to build more resilient supply chains as the United States aims to reduce exposure to China.

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