WASHINGTON–The U.S.’s new tax-break scheme for electric vehicles has drawn angry responses from the country’s key allies in Asia and Europe, highlighting a tension between government support for the domestic automobile industry and courting allies to counter China’s influence.
The European Union, Japan and South Korea say provisions in the U.S. legislation to promote clean energy, signed by President Biden in August, discriminate against their auto makers and might violate World Trade Organization rules that bar treating imported products differently from domestic ones.
