Macron Meets Biden, Calls US IRA "Very Aggressive" in Stern Criticism

German Deputy Prime Minister Also Says "Respond with EU-Like Measures"

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] French President Emmanuel Macron strongly criticized the discrimination in electric vehicle subsidies under the United States' Inflation Reduction Act (IRA). The German government also warned that the European Union (EU) would respond with similar measures, signaling the possibility of future retaliatory actions. There are concerns that this could weaken the transatlantic cooperation between Europe and the United States, which have been collaborating on Russia's invasion of Ukraine and countering China.

According to AFP on the 30th of last month (local time), President Macron, during his state visit to the United States, held a working lunch with lawmakers at the U.S. Capitol in Washington D.C., where he strongly criticized the electric vehicle subsidy issue in the Inflation Reduction Act. Macron stated, "This is very aggressive towards French industry," adding, "The U.S. may be able to solve their problems, but ours will only get bigger."

He continued, "If broad trade issues are not coordinated, it could lead to the loss of many jobs. When the Inflation Reduction Act was being discussed, no one called me. Consider my position," and pointed out, "Exemptions for European companies could be applied in the law, which could also create divisions within Europe."

This statement came a day before his summit with President Joe Biden. It is expected that Macron will strongly criticize the Inflation Reduction Act during their bilateral talks as well.

The German government also raised its voice of criticism, announcing EU-level retaliatory measures against the Inflation Reduction Act. According to Germany's Spiegel, Robert Habeck, Germany's Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, targeted the Inflation Reduction Act at an industry conference held in Berlin the previous day, stating, "The EU will respond with similar measures," and added, "To strengthen Europe's competitiveness, we must focus on production within Europe and provide tax benefits."