Mexican Economy Secretary Tatiana Clouthier said the tax credit is “discriminatory” and would violate the trade agreement between the United States, Mexico and Canada.
Mexico is analyzing a series of legal actions in response that may include tariffs, the official said.
“In the past we have effectively imposed tariffs and we would have to do or propose something very important and strategic in those products, in those places where it also hurts to the other side (…) so that the consequences are felt,” he said.
“It is not desirable when we are wanting to build a strong North America to cope with global circumstances,” he added.
Clouthier argued that the measure is totally contrary to free trade and that he had already rebuked Washington for applying what he described as protectionist policies that could be counterproductive and cause more migration to the US border.
US Trade Representative Katherine Tai has said that she is aware of the objections from Washington’s trading partners and that the matter is being discussed with them.
“The (United States) government is committed to addressing the threat of climate change by supporting the transition to electric vehicle manufacturing,” said USTR spokesman Adam Hodge. “We will remain engaged with stakeholders, including our business partners, as Congress studies the legislation.”
In late October, Mexico, the European Union, Germany, Canada, Japan, France, South Korea, Italy and other countries wrote to US lawmakers saying the proposed EV tax credit violates international trade rules.
The proposal has been endorsed by Biden, the United Auto Workers (UAW) and many Congressional Democrats, but is rejected by automakers such as Toyota Motor Corp, Volkswagen AG, Daimler AG, Honda Motor Co, Hyundai Motor Co and BMW AG. .
