Washington’s incentives for green businesses are a concern for the French leader
French President Emmanuel Macron stands at a podium at the French embassy in Washington, DC, on November 30, 2022. © Brendan Smialowski / AFP
A new US incentive scheme to subsidize local electric car makers risks driving a wedge between Western countries, French President Emmanuel Macron warned on Wednesday amid looming fears of a trade war between Washington and Brussels.
Speaking at the French embassy, during a state visit to America, Macron said the scheme would have a negative impact on the EU by making it less attractive for businesses to invest in the bloc’s economy.
The US Inflation Reduction Act (IRA) offers $391 million of incentives to promote clean energy, including support for electric vehicle manufacturers.
“The choices of the past few months, in particular the IRA, are choices that will fragment the West,” he said, adding that the EU and the US need “to co-ordinate and re-synchronize our policy agendas.”