Japan says new US electric vehicle law could violate international law – Nikkei

TOKYO, September 8 (Reuters)Japanese Industry Minister Yasutoshi Nishimura has raised concerns with his U.S. counterpart that a new U.S. law on tax credits for electric vehicles could violate international law, the Nikkei newspaper.

The Department of Economy, Trade and Industry confirmed that Nishimura raised concerns about the law when he met with U.S. Secretary of Commerce Gina Raimondo in Los Angeles on Wednesday, as Nishimura took part in talks on the Indo-Pacific economic framework, but gave no further details.

The law limits tax credits for electric vehicles to those assembled in North America.

After President Joe Biden signed the legislation, credits for about 70% of the 72 models that were previously eligible ended, according to the Alliance for Automotive Innovation, an industry trade group.

The Biden administration said in mid-August that about 20 models were still eligible for tax credits of up to $7,500.

The auto industry group, however, said new restrictions coming into force on January 1 on battery and mineral supply and price and revenue caps will make all or nearly all electric vehicles ineligible.

The Japan Automobile Manufacturers Association, a major Japanese auto lobby, said last month it was concerned about the law and would closely monitor developments.

(Reporting by Satoshi Sugiyama; Editing by Edmund Klamann)

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