‘Domestic production’ tension between the US and Europe

European businessmen and politicians are against the White House, which announced new measures to encourage investment in domestic green technology.

The US government announced Wednesday that it will support American-made electric vehicle chargers. The administration also announced the $369 billion Cut Inflation Act in August, which includes hundreds of billions of dollars in subsidies and tax credits for clean US-made vehicles.

NATIONAL PRODUCTION CONDITION FOR THE INCENTIVE

According to the White House support package to encourage domestic production, 55 percent of products must be produced in the country next year to qualify for tax breaks and other subsidies.

This limits European exports of car parts, technology and raw materials. In addition, many European companies are already making plans to move to the US. Brussels said it could complain to the World Trade Organization about the regulation, while officials claimed the US was trying to drive companies away from the EU.

‘THEY DECIDE ACCORDING TO THEIR OWN INTEREST’

Luisa Santos, Executive Vice President of BusinessEurope, which represents European companies, said: “Our most important trading partner makes decisions in line with its own interests. They continue to do this. But he wants us to support them in China,” she said.

Cecilia Bonefeld-Dahl, managing director of DigitalEurope, which represents the continent’s tech sector, said: “The way to achieve our shared climate goal is through joint action and shared standards, not more ‘buy-US’.”

EUROPEAN COMMISSION WILL MEET WITH USA.

The European Commission said it would try to negotiate with the US on subsidies.

“We must create synergies to avoid trade barriers in transatlantic relations,” a commission spokesman said last week. We will continue to convey our concerns about discrimination to our American counterparts.”