Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Russian agency: Russia will conduct a nuclear test if the US does
Al-Nakhalah: We are the rightful owners, and we must fight to retrieve our rights
Al-Nakhalah: The enemy and its allies must know that we can never surrender to their terms and diktats after all the sacrifices made
Al-Nakhalah: The prisoner exchange clause can be completed in the next few days, and thus we will have pulled the [explosion] fuse and removed the enemy's justifications for aggression
Al-Nakhalah: The Resistance has expressed its willingness to negotiate on the basis that there are items that can be dealt with positively, the first of which is the prisoner exchange item
Al-Nakhalah: Trump's plan entails the Palestinian people's declaration of complete surrender to the enemy
PIJ Secretary-General, Ziyad al-Nakhalah, in an address aired on Al Mayadeen: The Resistance is engaging in a fierce negotiating battle under the so-called Trump plan
Russian Federation Council approves joint military cooperation agreement with Cuba
Al-Nunu: Today, the lists of prisoners required to be released, the agreed-upon criteria and numbers, were exchanged
Al-Nunu from Sharm el-Sheikh: Negotiations focused on mechanisms for implementing an end to the war, the withdrawal of occupation forces from the Gaza Strip, and the exchange of prisoners

Macron US visit last chance to avert trade war - reports

  • By Al Mayadeen English
  • Source: Agencies
  • 29 Nov 2022 18:41
  • 1 Shares
5 Min Read

The European Union is extremely concerned about the threat that the United States poses to the two countries through its Inflation Reduction Act, with President Macron heading to the US for talks about the issue.

  • x
  • French President Emmanuel Macron speaks to the media in February in Berlin, Germany (Getty Images)
    French President Emmanuel Macron speaks to the media in February in Berlin, Germany (Getty Images)

French President Emmanuel Macron's visit to the United States this week will mark a turning point for Europe, as it will be the old continent's last chance to convince its biggest ally, the United States, to convince President Joe Biden to pursue a less strict Inflation Reduction Act and steer clear of a trade war, US newspaper Politico reported on Tuesday.

The French head of state will go to the United States on an official five-day visit that will kick off today and will last through December 3. He is set to meet with Biden in Washington on December 1.

Macron wants to know whether his American counterpart would be able to offer Europe cheaper gas and provide it with access to its multi-billion-dollar green industry subsidy scheme, the newspaper said.

Additionally, it noted that Biden refusing to make concessions on the inflation legislation, a "transatlantic trade war would be more or less inevitable."

In the European Union's belief, Washington should show greater solidarity with Europe, which itself is suffering under the sanctions imposed on Russia, the report added.

"There’s a risk that imbalances will worsen as the EU pays higher energy prices and the US takes measures to boost investment in industry," an Elysee Palace official told Politico.

Macron would have achieved his goals if the European allies would be able to receive the same rights in subsidy deals under the aforementioned legislation that Europe is currently fearing as US, Canadian, and Mexican companies, the report stressed.

Macron and German Chancellor Olaf Scholz seem to agree that they should potentially hit back against the United States over the unfair competition it has created, US media outlet Politico said last month.

The two European leaders agreed that recent subsidy plans made by the US, which they saw represented measures that shift the market in distorting manners aimed at convincing companies to produce their products in the US, people familiar with the matter told Politico.

They underlined that this posed a problem to the European Union and agreed that Brussels should work on addressing it.

Related News

Russia ratifies military deal with Cuba amid US escalation

Araghchi denies any contact with US envoy Witkoff over nuclear talks

A senior French economy ministry official also told Politico on Tuesday that the United States was not likely to abandon its measures to reduce inflation.

If Washington follows through with that, the Europeans would have to choose whether they adhere to protectionism and risk engaging in a subsidy competition with the US that they cannot afford in light of the continuously rising energy and food prices all across the EU. Alternatively, according to the report, they can resort to watching the rest of the world "build up protectionist walls."

The Inflation Reduction Act, signed by Biden in August, would allocate $300 billion toward deficit reduction and provide some $369 billion in funding for energy security, including handing out tax credits for US-made electric vehicles, imposing subsidies for US consumers, and $80 billion to increase Internal Revenue Service tax enforcement and operations.

Though Macron and Scholz seemed to come to an agreement in October, the two heads of state were bickering for days over central political, energy, and defense issues, but they were in complete disagreement that their 27-nation bloc cannot remain idle in the face of Washington pushing ahead with its Inflation Reduction Act offering tax cuts and energy benefits for corporations that invest in the US if the bill maintains the same text it currently has.

Europe is also concerned about how the legislation is encouraging consumers to purchase American products when it comes to electrical vehicles, which would cause a world of hurt for European manufacturers, especially automobile giants France and Germany.

The European pair practically said that Brussels would have to strike back if the US does not scale back, as the way Washington is acting would likely plunge it into a new trade war with its closest European allies.

"We need a Buy European Act like the Americans, we need to reserve [our subsidies] for our European manufacturers," the French President said.

Berlin has long been very nonchalant when it comes to its trade dispute with the United States, but now it is in support of the European push in the face of Washington, with Scholz agreeing that the bloc should implement countermeasures similar to those of the US if the latter chooses to ignore Germany and France's concerns.

Scholz had underlined that Europe will need to discuss the Inflation Reduction Act with its ally across the Atlantic ocean "in great depth" due to the various issues it imposes on the EU.

Though the threat is on the table, the two European leaders would rather reach a negotiated solution with Washington, one that involves an "EU-US Taskforce on the Inflation Reduction Act" established by European Commission President Ursula von der Leyen and US Deputy Security Adviser Mike Pyle earlier.

Macron, meanwhile, called out US "double standards" for selling gas to Europe at prices 3 to 4 times higher than it is sold in the US domestic markets.

"American gas is 3-4 times cheaper on the domestic market than the price at which they offer it to Europeans. These are double standards," Macron stated. "It concerns sincerity in transatlantic trade" and that this issue should be addressed.

  • United States
  • Europe
  • Olaf Scholz
  • Inflation Reduction Act
  • inflation
  • Emmanuel Macron
  • France
  • Joe Biden
  • European Union
Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

Most Read

Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
ap

'Israel' pays influencers $7K per post to whitewash Gaza genocide

  • Politics
  • 1 Oct 2025
Mossad’s secret role in Aldo Moro’s 1978 murder revealed

Mossad’s secret role in Aldo Moro’s 1978 murder exposed

  • Politics
  • 5 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Retired Israeli General Brik says Israel has reached point of no return.
Politics

Retired Israeli General Brik: 'Israel has reached point of no return'

Depleted by foreign wars, US seeks to re-arm for another confrontation
Politics

Depleted by foreign wars, US seeks to re-arm for another confrontation

Gaza’s newborns gasp for life as hospitals collapse amid Israeli war
Health

Gaza newborns gasp for life, share oxygen masks amid collapsed system

UK arms exports to 'Israel' reach record high despite ban calls
Politics

UK arms exports to 'Israel' reach record high despite ban calls

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS