US, South Korea trade ‘frank views’ amid EV subsidies dispute | Enterprise and Financial system
Tensions over financial points come as South Korean President Yoon Suk-yeol makes first US journey.
America on Wednesday mentioned its commerce secretary and South Korea’s commerce minister exchanged “frank views” over Seoul’s pending laws on community utilization charges on overseas content material suppliers and Washington’s electrical car credit throughout a gathering.
The Inflation Discount Act legislation, signed by President Joe Biden final month, eliminates federal tax credit for electrical automobiles made exterior North America, which means corporations, together with Hyundai and its affiliate Kia Corp, will not be eligible for such subsidies.
South Korean President Yoon Suk-yeol arrived for his first official journey to the US this week however the tensions threatened to disrupt a current show of alliance energy with Washington.
In South Korea, there’s a legislative push to make the likes of Netflix and Alphabet’s Google pay native community charges.
Whereas the readout from the US Commerce Division mentioned Secretary Gina Raimondo and South Korea’s Lee Chang-yang reaffirmed the significance of the bilateral financial relationship, it additionally hinted at tensions.
The pair “exchanged frank views on US issues about South Korea’s pending laws to impose community utilization charges on overseas content material suppliers and South Korea’s issues regarding electrical car tax credit,” it mentioned.