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Japan asks U.S. to loosen rules around EV tax credits

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such as EVs, now require final assembly to take place in North America

What's wrong with that, product that being sold in US should benefit employment for local people. Japan always impose trade regulation, now it's time for US to do things for own good!

https://www.japantimes.co.jp/news/2021/04/01/business/economy-business/u-s-japan-trade-barriers/

-8 ( +10 / -18 )

I realize that Japan's request is purely out of self-interest. But, limiting the credit to EV's assembled in the US really does do a disservice to US consumers. There are already various regulations in place to encourage US assembly of motor vehicles that help consumers. This one does not.

It severely limits the number of models available to them, and thus severely reduces any positive environmental impact they might have achieved, if it was open to all EV's, regardless of country of assembly, it would have a greater environment impact, and give consumers more choices.

Also, limiting the MSRP to $80K for trucks/SUVs and $50K for cars really limits choices even more, considering how much more expensive EV's typically cost compared to ICE vehicles. There may be more choices among PHEV's. But, many BEV's will be excluded for price alone.

-9 ( +2 / -11 )

Google conflict minerals and find out where the minerals for your batteries and electronics are really coming from

4 ( +4 / -0 )

Except, Japan's EVs are pretty crappy. So they still won't sell.

-6 ( +4 / -10 )

Except, Japan's EVs are pretty crappy. So they still won't sell.

The price they pay for having such a high content of Chinese made parts in each EV.

-1 ( +3 / -4 )

Let's face it, this rule is aimed at BYD and Geely, not Nissan and Toyota.

Ariya is unlikely to sell well in the USA, even it's bolted together in Mexico. BYD offer incomparable value for money - the Big Three wouldn't stand a chance.

0 ( +2 / -2 )

Japan can't source from China and sell to the states for a profit under these regulations.

0 ( +2 / -2 )

It is only fair. American jobs out weigh Japanese jobs.

Tell Japan to end their taxes on American cars first.

Japan only wants free trade one way for Japan.

-6 ( +6 / -12 )

I saw an article that the EU wants a slice of the pie also. I keep seeing terms like "rules" and "negotiate" which implies that this is not written in law. I understood that these tax incentives were laid out in the legislation passed late summer in the US. If so, I certainly hope that bureaucrats are not able to change the law and it has to go back for a vote.

0 ( +1 / -1 )

Ah, Japan.... always begging to be an exception and crying if they aren't. Meanwhile, how have they relaxed taxes on imports to "not harm the makers in other nations"? They haven't -- they jack up tariffs up to 900% or just don't allow in certain products so as to benefit local companies/producers that cannot compete. America doesn't have to change its guidelines to make room for Japan, Japan has to change its ways or get no room at all.

-9 ( +2 / -11 )

Tell Japan to end their taxes on American cars first.

They already have. Japan doesn't place any tariffs on cars imported from the US.

11 ( +13 / -2 )

For anyone still struggling to believe that there are zero tariffs levied on American cars imported into Japan, electric or otherwise, you can check for yourself here:

https://www.customs.go.jp/english/tariff/2022_1_1/data/e_87.htm

87.03 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars : (WTO) Free, Free, Free, Free, Free

9 ( +10 / -1 )

EV tax credits are a centerpiece of the Inflation Reduction Act,

Funniest sentence of 2022.

0 ( +2 / -2 )

DocCarlosToday  07:21 pm JST

It is only fair. American jobs out weigh Japanese jobs.

Tell Japan to end their taxes on American cars first.

Japan only wants free trade one way for Japan.

Everything in this comment is false.

Tell the US to end their taxes on Japanese cars.

There are no taxes on the first 5,000 cars of any model imported from the US. And the duty after that is less than the US import duty on cars. Not so for imports to the US.

Hell, there's a 50% duty on pickup trucks to the US.

Japanese car makers employ 1.5 million Americans in the US.

The roads in Japan are filled with Mercedes, BMW's, Volkswagen's because US cars are unappealing and have no infrastructure to support them. US car makers don't build or design anything for the Japan market.

10 ( +10 / -0 )

PeterM,you said it most Americans cars cannot squeeze through Japanese narrow streets,America make some nice looking cars, Japanese cars look similar in design you figure

-8 ( +0 / -8 )

If Japan's auto industry is going to disappear within this decade, Japan will be dropping out of OECD and developed nations officially. Japan's manufacturing will be very much non-existent.

Toyota and Japan's automakers are so stubborn against EVs, while India and Vietnam already make huge strides. China and South Korea have long left Japan in the dust.

-10 ( +1 / -11 )

Tell Japan to end their taxes on American cars first.

As written above, there is a common misconception that Japan imposes high taxes on imported cars, when the true figure is actually 0%, and has been for decades.

Meanwhile the USA whacks 50% on pick ups and is now unfairly penalising EVs not made in N.America.

Such protectionist policies have made The Big Three utterly uncompetitive in international markets since the turn of the millennium and, if not reversed, will kill them off completely.

7 ( +8 / -1 )

The law had to be written that way to get it passed through Congress. Doesn't make it right.

1 ( +1 / -0 )

Funniest sentence of 2022

Agreed, but congress was serious about it LOL.

Re' national policy for EV, I think 'until' such time as the air has cleared re' raw materials, battery tech, recycling etc. It would be highly risky NOT to have the entire manufacturing chain done nationally.

If you didn't have an on own soil policy (which can be changed anytime later):

You will get foreign manufacturers selling you battery that can't be recycled;

You will depend on their battery as much as you currently depend on oil;

The efficiency of your fleet will be based on foreign dictates;

and since IoT the entire could be disabled remotely by nefarious actors.

You want control of the whole chain, and not trust countries like China, or Germany (who as you all know has got car ownership anxiety down to a fine art, from the moment you step into a dealership).

0 ( +1 / -1 )

Peter Neil

The roads in Japan are filled with Mercedes, BMW's, Volkswagen's because US cars are unappealing and have no infrastructure to support them. US car makers don't build or design anything for the Japan market.

Not exactly true. The roads here also have plenty of Jeeps and Chryslers built specifically for the Japan market. (Whether or not Jeep/Chrysler is still an American brand, may be up for debate, though.)

And, let's not forget Tesla. A fairly popular upscale brand here now, considering it was only recently introduced to the Japan market.

I also see the occasional Corvette or other American "sports" car, as well. But, those are special cases, and not built for this market. Just car lovers with money, showing off.

0 ( +0 / -0 )

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