US, South Korea exchange ‘frank views’ amid EV subsidies dispute | Business and Economy

Tensions over financial points come as South Korean President Yoon Suk-yeol makes first US journey.

The USA 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 international content material suppliers and Washington’s electrical automobile credit throughout a gathering.

The Inflation Discount Act regulation, signed by President Joe Biden final month, eliminates federal tax credit for electrical autos made outdoors North America, that means firms, together with Hyundai and its affiliate Kia Corp, will now 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 latest show of alliance power 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 international content material suppliers and South Korea’s issues referring to electrical automobile tax credit,” it mentioned.