US Biden "Discussed IRA with Macron... No Intention to Exclude EU"

U.S. President Joe Biden is attending a press conference and responding to questions after concluding a summit meeting with French President Emmanuel Macron in Washington DC on the afternoon of the 1st (local time). [Capture]

[Asia Economy New York=Special Correspondent Joselgina] On the afternoon of the 1st (local time) in Washington DC, U.S. President Joe Biden attended a press conference following a summit meeting with French President Emmanuel Macron and stated, "I discussed the Inflation Reduction Act (IRA) with President Macron," adding, "There was never any intention to exclude (European companies)."

President Biden said regarding the legislation of the Inflation Reduction Act, "The United States does not apologize. I do not apologize either," but acknowledged that there are some "glitches" that need to be fixed within the bill. He also mentioned that they will work to reconcile differences through discussions with the European Union (EU). He added, "We will continue to create manufacturing jobs, but we will not sacrifice Europe."

Earlier, during his state visit to the United States, President Macron visited the U.S. Congress the day before and strongly criticized the discriminatory issues in the electric vehicle subsidies under the Inflation Reduction Act. President Macron described it as "very aggressive toward French industry," and said, "The U.S. may be able to solve the problem, but our problem will only grow." Consequently, concerns arose that the bill could weaken cooperation within the so-called transatlantic alliance. This issue was also regarded as a major topic during the summit meeting that day.

The Inflation Reduction Act, which provides up to $7,500 in tax credits to electric vehicle buyers, limits eligibility to North American-made vehicles. Additionally, it includes stipulations that at least 40% of the critical minerals used in electric vehicle batteries must be mined or processed in the U.S. or countries with which the U.S. has a Free Trade Agreement (FTA), and at least 50% of battery components must be North American-made.

As a result, electric vehicles made in the EU, Japan, and Korea were excluded from the subsidy eligibility, inevitably causing export disruptions. The Korean government has also expressed concerns multiple times, viewing the subsidy discrimination as likely violating the principles of national treatment and most-favored-nation treatment under the Korea-U.S. FTA and the World Trade Organization (WTO).