Japan's government warned on Saturday that new electric vehicle tax credits in the United States could ultimately deter further investment by Japanese firms there and hit employment in the world's biggest economy.
In a comment submitted to the U.S. Treasury Department, the government raised a number of concerns about the tax credits in the Inflation Reduction Act (IRA), which is designed to build more resilient supply chains as the United States aims to reduce exposure to China.
The statement is a culmination of monthslong concerns shared by the Japanese government and the country's auto lobbying group that the IRA puts Japanese carmakers at a disadvantage in their crucial North American market.
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