Hyperdrive

US May Need New Trade Agreements So EV Makers Can Meet Anti-China Rules

  • Industry bracing for strict new rules banning China minerals
  • Electric-vehicle tax credits seen as critical to US adoption

John Bozzella, president of Washington-based trade group Alliance for Automotive Innovation.

Photographer: Andrew Harrer/Bloomberg
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The US may need to set up a new trade consortium to meet the anti-China demands of new electric-vehicle tax credits passed by Congress last year, the head of the group that lobbies for most major automakers said Tuesday.

“We talk a lot about onshoring,” or moving production domestically, said John Bozzella, president of Washington-based trade group Alliance for Automotive Innovation, in an interview with Bloomberg News in Washington. “But you’re also hearing a term of art that people like to throw around now: friendshoring.”