SEOUL– Trade Minister Ahn Duk-geun met with European officials Wednesday and discussed ways to jointly respond to a U.S. act that excludes electric vehicles assembled outside of North America from tax incentives, the industry ministry said.
Ahn met with British Ambassador to South Korea Colin Crooks, Swedish top envoy in Seoul Daniel Wolven, and Christophe Bess, Charge’ d’affaires of the European Union, in Seoul for talks on the Inflation Reduction Act (IRA), according to the Ministry of Trade, Industry and Energy.
The IRA, signed by Biden in August, gives up to US$7,500 in tax credits to buyers of EVs assembled only in North America, sparking concerns that South Korean and some European automakers will lose ground in the U.S. market, as they make EVs at domestic plants for export to the U.S.
Later in the day, Ahn held a separate talks on the matter with Michael Reiffenstuel, Germany’s top envoy to Seoul, the ministry said.
In 2021, South Korea sold some 32,000 EVs in the U.S. market. Germany and Sweden sold about 50,000 and 23,000 units each to American consumers, and the figure for Japan came to about 63,000 units, according to officials here.
South Korea has gone all-out to resolve the discriminatory feature of the law, including holding discussions with European and other nations in the same position. It has also continued communications with the U.S., as Washington is requesting public comment on the IRA’s implementation, according to the ministry.
Source: Yonhap News Agency