United States: the EU castigates the tax credit which favors electric cars “made in the USA”

Are we witnessing the establishment of a protectionist measure that does not speak its name in the country of free trade? It is in any case the opinion of the European Union which, as related by 20 minutesdenounces the forthcoming introduction, by the federal government, of a tax credit of 7,500 dollars for the purchase of an electric car manufactured in the United States, thus favoring American manufacturers.

After eighteen months of tough negotiations, the US Senate last Sunday adopted President Joe Biden’s grand plan on climate and health, which includes a tax credit for the acquisition of an electric vehicle coming out of an American factory and equipped with a battery produced in the United States. A measure that has provoked the ire of the EU, which thus castigates the implementation of discriminatory measures for the European automotive industry at the very moment when Europeans seek to inflate their own production of electric batteries thanks to colossal investments in the domain.

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A measure “discriminatory for foreign manufacturers”

“The EU is extremely concerned about this bill affecting transatlantic trade. We believe that it discriminates against foreign manufacturers compared to American manufacturers”, denounced Miriam Garcia Ferrer, a spokeswoman for the Commission. European.

“Tax credits are an important incentive to encourage demand for electric cars (…) but we must ensure that the measures introduced are fair,” said the spokesperson during a regular press briefing. . “We therefore continue to urge the United States to remove these discriminatory elements from the bill and ensure that it is fully WTO compliant,” she added.

The electric car tax credit must now be approved by the House of Representatives before it becomes law.

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