MADRID, November 9. /TASS/: The European Union is preparing for a new trade war with the United States after Washington approved the Inflation Reduction Act aimed at helping the national production, the Spanish newspaper Diario reported on Wednesday.
Under this act, the American authorities are to allocate about $400 billion on climate and energy policies. The law in particular promotes the transition to green energy, thereby affecting the European automotive sector, which is very important in countries such as Germany and France, the newspaper wrote.
The European Commission believes that the plans of the US President Joe Biden to promote electric vehicles discriminate against foreign manufacturers.
In particular, according to a document shared with the EFE agency, Brussels was alarmed by nine provisions on tax credits. Last week, representatives of the EU and the US had a meeting, which ended inconclusively. European negotiators believe that the law promoted by Washington is unacceptable.
As First Deputy Head of the European Commission Valdis Dombrovskis said earlier, a special working group had been created a month ago to find out what the European Union is worried about regarding the US Inflation Reduction Act and how it can be solved.
"That’s what we’re eventually seeking: that the EU should be, as a close ally of the U.S., in a position which is more similar to that of Mexico and Canada," Dombrovskis said on Tuesday.
