U.S. Trade Agency Backs Proposed EV Tax Credit Despite Mexico’s Objections




Dec 3 (Reuters) – The U.S. Trade Representative’s office said on Friday it was committed to legislation strengthening the U.S. electric vehicle industry despite its inclusion of a tax credit that has drawn threats of retaliation from Mexico, which calls it “discriminatory”.

The proposed $12,500 electric vehicle tax credit would include $4,500 for EVs built in the United States by union workers, effective after 2027. It is included in the Biden administration’s sweeping climate and social spending legislation now under consideration by Congress.

Mexican Economy Minister Tatiana Clouthier said the tax credit was “discriminatory,” and would violate the U.S.-Mexico-Canada Agreement on trade. Mexico is analyzing a range of legal actions in response that may include tariffs, Clouthier said on Thursday.

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