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U.S. EV tax break leaves out imports in blow to Japanese, European autos

$7,500 credit limited to North American-made cars despite objections from other countries

U.S. President Joe Biden drives a Cadillac electric vehicle during a visit to the 2022 Detroit Auto Show.   © Reuters

WASHINGTON/TOKYO -- The U.S. Treasury Department announced guidelines Friday for new tax breaks on electric cars that exclude vehicles assembled outside North America, leaving Asian and European automakers to boost American production or face a disadvantage with car buyers.

The measure starting this year offers tax credits of up to $7,500 for buyers of new electric vehicles or plug-in hybrids assembled in North America.

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