U.S. grants FTA status for Japan under new EV tax credit rules

The Treasury Department on Friday released details of tax credit requirements for electric vehicles, including granting Japan a status on par with having a free trade agreement with the United States.

Under the rules to take effect on April 18, although the two countries have no FTA, Japanese EVs will be eligible for U.S. tax incentives even if critical battery minerals are processed in Japan as long as such vehicles are assembled in North America.

The credits are aimed at promoting the administration of President Joe Biden’s goal of making 50 percent of all new cars and light trucks sold in t...