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USA: Government does not plan retrospective changes to subsidy law

2022-12-03T11:38:20.255Z

The dispute over subsidies for US products strains the relationship between the US and the EU. After sharp criticism from the French President, the White House makes it clear: the law that has been passed will not be improved.



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The White House administration does not plan to change the "Inflation Reduction Act"

Photo: Andrew Harnik/AP

In Europe, it has met with great criticism because of the trade policy effects, but this does not seem to have any real impact on the decision in Washington: the US government is not planning any subsequent changes to the anti-inflation law that has been passed.

"We have no plans to ask Congress to change the law," White House spokeswoman Karine Jean-Pierre said.

However, we are working with European partners to take their concerns into account.

Exactly how this is supposed to happen remains unclear.

The law is intended to boost US industry and favor it over foreign competitors.

Subsidies and tax credits are linked to companies using US products or producing them themselves in the US.

There is much criticism of this in Europe.

French President Emmanuel Macron also raised the issue during his state visit to the United States.

He warned that the law would create such disparities that many companies would no longer invest in Europe - threatening to divide the West.

Macron on a state visit to the United States

US President Joe Biden defended the law in general.

He made it clear that he would not deviate from the course of making the USA less dependent on international supply chains.

But Biden said there are minor flaws in the law that could be discussed and resolved.

There are discussions about this at the working level.

The Inflation Reduction Act was only passed after long and extremely arduous negotiations in the US Senate.

The package is considered one of the biggest domestic political successes of Biden's tenure to date - and represents the largest investment in the fight against global warming in US history.

tfb/dpa

Source: spiegel

All business articles on 2022-12-03

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