US-EU not expected to enter trade war over US anti-inflation act: CEO
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The US Inflation Reduction Act could prevent a trade war between the US and EU.
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President Joe Biden, left, walks with European Council President Charles Michel during arrival for an EU summit at the European Council building in Brussels, Thursday, March 24, 2022. (AP)
Despite concerns over the US Inflation Reduction Act, the United States and its European allies are not expected to enter a trade war on clean energy, Linde plc CEO Sanjiv Lamba told Sputnik.
"I do not think a trade war on clean energy or its components is likely, to be honest," Lamba said.
Based on his interactions and engagements in the energy industry, he believes that political bodies in the United States and the European Union will be pragmatic in dealing with the issue.
US President Joe Biden signed the Inflation Reduction Act in August 2022, seeking to attract investments and reduce dependence mainly on Chinese technologies.
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Under the legislation, $370 billion will be spent on ensuring clean energy and achieving the set climate goals and $64 billion on reducing the cost of medicines and health insurance.
Previously, the European Commission warned that the Inflation Reduction Act discriminates against EU companies and threatens the bloc's industrial base.
The EU has been in talks with the US over the issue, with European leaders calling against the law for it being "unfriendly toward the bloc."
The EU and the US launched a joint task force in October 2022 to address concerns raised by the EU as regards the IRA and establish close coordination between the sides to promote sustainable green economic development and support resilient supply chains across the Atlantic.
Read next: UK joins EU opposing US inflation act, will 'harm multiple economies'
Last year, news outlet Politico reported on November 23 that the EU is planned to launch a bloc-wide subsidy assistance program to shield its own industries from US competitors.
In light of the sweeping energy crisis throughout the EU, serious concerns have been raised since Washington adopted the Inflation Reduction Act (IRA) on August 16, 2022, which many officials believe will entice crucial enterprises to invest in the US rather than the EU.
Some EU officials have gone as far as criticizing the bill for breaching international trade rules.
