EU Threatens Retaliation Over Discrimination Measures in Inflation Reduction Act
The EU wants the U.S. to drop discriminatory language and production requirements in the Inflation Reduction Act's green tax credits so it can get the same treatment as other trading partners, according to a document sent to Washington Nov. 4,…
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Bloomberg reported. The letter called for greater transparency in the tax credits under the IRA and to ensure the bill's subsidies don't create adverse effects, threatening potential retaliation if the concerns are not addressed. The new U.S. trade restrictions could risk "creating tensions that could lead to reciprocal or retaliatory measures," the letter said. The document comes on the heels of a meeting between EU and U.S. officials over the bloc's concerns about the bill (see 2210310005). The EU said the new law is "particularly worrying" over supply chains as it will limit sources of critical materials and encourage "harmful competition" for inputs.