Markets

U.S. and EU launch formal group to address conflict over EV subsidies


© Stocksak. FILEPHOTO: A sign for electric cars was painted on the ground at a Wolfsburg, Germany parking lot, April 6, 2016. REUTERS/Kai Pfaffenbach/File Photo

By Trevor Hunnicutt

WASHINGTON, (Stocksak), U.S. and European Union officials are to officially establish a task force next Wednesday to discuss new American laws that Europeans fear will discriminate in favor of foreign electric car makers. According to a Tuesday statement.

The talks take place as auto manufacturers from Stuttgart and Seoul are angry at Biden’s $430 billion “Inflation Reduction Act”, which was passed in August. It is aimed at rolling back climate changes and making Washington a leader in the electric vehicle market.

The law includes provisions that EVs must be assembled in North America to be eligible for tax credits. The law also prohibits subsidies for other EV types and requires that a portion of the critical minerals used to power those cars’ batteries come either from the United States, or an American partner in free trade.

According to White House spokesperson Adrienne Wilson, Mike Pyle, the deputy national security adviser to President Joe Biden, agreed to form a task team on the topic during an earlier meeting with Ursula von der Leyen’s head of cabinet, Bjoern Séibert.

Watson stated that the task force would “promote a deeper understanding” of the “opportunities, concerns for EU producers”. It comes after high-level meetings between officials from the Biden administration and representatives from allied countries upset over the new law.

U.S. legislation has an impact on EU car makers, like Volkswagen (ETR).

News Source and Credit

Stocksak Editorial

We are a financial blog that covers topics such as investing, saving, spending, and earning more money. Please feel free to peruse our site and read any of the articles that catch your interest.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button