U.S., EU launch formal group to discuss conflict over EV subsidies | Inquirer Business

U.S., EU launch formal group to discuss conflict over EV subsidies

/ 10:37 AM October 26, 2022

WASHINGTON  – U.S. and European Union officials will formally launch a task force next week to discuss new American laws that Europeans fear will discriminate against foreign electric car makers, according to a statement on Tuesday.

The talks come as auto manufacturers from Stuttgart to Seoul have been angered by Biden’s $430 billion “Inflation Reduction Act”, enacted in August and aimed at rolling back climate change and making Washington a world leader in the electric vehicle (EV) market.

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Among the law’s provisions are requirements that EVs be assembled in North America to qualify for tax credits. The law also ends subsidies for other EV models and requires that a percentage of critical minerals used in those cars’ batteries come from the United States or an American free-trade partner.

President Joe Biden’s deputy national security adviser Mike Pyle agreed to launch a task force on the topic during a meeting earlier in the day with European Commission President Ursula von der Leyen’s head of cabinet, Bjoern Seibert, according to White House spokesperson Adrienne Watson.

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The task force would “promote deeper understanding” on the “opportunities and concerns for EU producers,” Watson said, and comes after high-level meetings between Biden administration officials and allied countries angered over the new law.

EU car makers – like Volkswagen – are affected by the U.S. legislation.

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TAGS: electric vehicles, EU, subsidies, task force, U.S.
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