Report: French, German Officials Concerned IRA Will Cause Trade War
The French and German economy ministers met earlier this week, and after their talk, told reporters that the subsidies under the U.S.'s Inflation Reduction Act are problematic for the relationship between the U.S. and the EU.
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An Associated Press report quoted French Economy and Finance Minister Bruno Le Maire as saying there needs to be an adequate European response to the law. "Asked what such a response might entail, Le Maire said, 'We are not talking about tit for tat.'"
"We should seize any opportunity that we have to talk to the U.S. administration and to explain very clearly that we do not want to be hit by these (latest) decisions of the Biden administration and by the consequences of the Inflation Reduction Act,” he said.
German Economy Minister Robert Habeck said European manufacturers are being drawn to the U.S. because of the strong subsidies offered.
“We can’t (enter into) a trade war in times like this," he said, the AP reported. "We are in good talks with our American partners, but this needs definitely a strong answer, a strong, strong European reply."