Electric vehicle tax credits a key issue in U.S.-U.S. trade talks

According to a Reuters report today (6), the United States and the European Union said on Monday that they had made progress in addressing the EU's concerns about the US climate law. The law, which would cut off U.S. tax credits for electric vehicles in the EU, fails to resolve the issue.

They issued a joint statement after the third ministerial meeting of the US-EU Trade Technology Council (TTC), saying they would work constructively to resolve the issue.

"We acknowledge the EU's concerns and underscore our commitment to address them constructively," the statement said, noting progress made by a task force established to resolve the dispute.

European Union Trade Commissioner Valdis Dombrovskis said on Monday that a $430 billion U.S. inflation-reducing bill was discriminatory and urged steps to amend the law by the end of the year. It offers consumers a $7,500 tax credit for new purchases of Tesla, Ford and other North American-made electric vehicles that the EU fears will seriously hurt Europe.