The United States cancels subsidies for South Korean electric vehicles: South Korean government is worried

August 19 news, as South Korean electric vehicles were excluded from the list of tax deductions under the inflation reduction Act, the South Korean government expressed concern to the United States through a number of channels.

It is predicted that Hyundai IONIQ 5, Kia EV6 and other electric cars made and exported in South Korea may not be entitled to tax breaks, and their sales in the United States will also be hit.

South Korean Foreign Ministry officials pointed out that the electric vehicle subsidy program proposed in the inflation reduction Act violates not only the Korea-US Free Trade Agreement (FTA), but also WTO rules.

On the eve of the passage of the bill, Hyundai held a joint meeting with battery makers LG Energy Solution, Samsung SDI and SK, and the South Korean companies asked the South Korean authorities to provide support to South Korean companies moving into the United States to ensure that they enjoy non-differential treatment.

South Korea has also written to the US House of Representatives asking the US to include electric cars and battery components manufactured or assembled in South Korea within the scope of US tax breaks, but the requirements have not been adopted.