White House: "IRA Benefits Will Return to the Country... Biden's Determination is Firm"

Resolving Controversy Over IRA
Will the EU Be Subject to IRA?

On the 3rd (local time), the White House dismissed concerns about the Inflation Reduction Act (IRA), stating, "The benefits of the IRA extend beyond the United States to other countries as well."

White House Press Secretary Karine Jean-Pierre responded to a question during the briefing about whether an agreement related to the IRA would be reached during European Union (EU) Commission President Ursula von der Leyen's visit to the U.S. next week, saying, "I don't want to get ahead of things."

[Image source=Yonhap News]

Press Secretary Jean-Pierre emphasized, "(President Biden) will never back down," adding, "We have made it clear how important the IRA is to us."

She further stated, "The benefits of the IRA extend beyond the United States to other countries," and "This is why President Biden has fought with full force for this legislation."

The IRA centers on providing large-scale subsidies for American-made products, addressing the climate crisis, and promoting the use of renewable energy. Subsidies are granted only if electric vehicles are finally assembled in North America and a certain percentage of battery components and critical minerals used in batteries are sourced from North America or countries that have free trade agreements (FTA) with the United States.

Unlike South Korea, the EU is not a country that has an FTA with the United States, raising controversy over whether this provision applies to them.

Ahead of Commission President von der Leyen's visit to the U.S., European media speculated that measures to alleviate concerns raised by the IRA would be discussed.