Ratified this summer, the “Inflation Reduction Law” launched by Joe Biden “must not destroy the equality of conditions between our two economies,” Economy Minister Robert Habeck warned at a press conference, stressing that “it requires a forceful response from the European side”.
According to Habeck, the companies run the risk of being “torn from Europe to the United States by the heavy subsidies” provided for in this plan, worth 370,000 million dollars for the construction of wind turbines, solar panels and electric vehicles.
The German minister urged Washington to guarantee conditions of fair competition so that foreign companies are not discriminated against.
“We cannot enter a trade war at a time like this. We are partners, even across the Atlantic,” he told a news conference, citing interviews with his French counterpart Bruno Le Maire.
fears
The latter said he shared the same fears that the US plan could “jeopardize equal treatment” between the two continents.
“The US Inflation Reduction Act is a matter of concern not only for France and Germany, but also for all European countries,” Le Maire said, calling for “adequate European responses.”
“We do not want to enter into a new trade war, it would be a total failure”, he repeated, wishing to favor dialogue between Europeans, and with Washington
Germany, home to car giants Volkswagen, BMW and Mercedes, is concerned about tax credits the United States plans for its domestic electric vehicle market under the new law.
Foreign Minister Olaf Scholz himself has warned that US plans could lead to a “major tariff war.”
Source: BFM TV
