Biden Pressed To Hand Out Tax Breaks To Foreign EV Makers

  • Foreign allies are pressuring the Biden administration to extend tax credits from the “Inflation Reduction Act” to foreign vehicles, according to Treasury Department documents.
  • The controversial IRA has been criticized by allies such as South Korea, the United Kingdom, Japan and the European Union for violating pre-existing trade agreements because their cars would not qualify for the $7,500 consumer tax credit.
  • Several foreign companies — such as Honda, Toyota and Hyundai — have announced, accelerated or expanded multibillion dollar investments in electric vehicle production plants in the United States after the IRA was passed in August.