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Biden's EV subsidy plan draws ire of Japan and European automakers

Proposed tax incentives for union-built EVs branded 'unfair'

U.S. President Joe Biden in an all-electric Ford F-150 lightning truck during an event in May.   © Reuters

NEW YORK/WASHINGTON -- Japanese and European automakers have cried foul over Washington's plans to subsidize electric vehicles made by union labor, declaring that the treatment would amount to a two-tiered system favoring a select group of manufacturers.

The Biden administration and Democratic lawmakers look to finalize a scheme that would grant a $4,500 tax credit for EVs assembled in union plants. It will be part of the proposed $1.75 trillion Build Back Better spending bill.

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