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EU urges US to rethink tax breaks in landmark green legislation

Brussels is latest to complain about provisions that would benefit US production of electric vehicles

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“As a matter of principle, you should not put this up against friends,” Vestager said of provisions in America’s new Inflation Reduction Act that offer substantial incentives to bolster domestic production of electric cars and other green technologies. “You have what we see as an unbalanced subsidy.”

EU officials are concerned that the policies in the Inflation Reduction Act discriminate unfairly against electric vehicles produced outside of the US, amounting to a breach of WTO rules. The act includes tax credits for electric vehicles made in North America as well as provisions seeking to boost the US battery supply chain and its renewable power sector.
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EU officials fear the tax breaks in the US will disadvantage the EU and prompt companies to shift production across the Atlantic, leading to job losses.
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https://www.ft.com/content/56cc482b-1847...2ccf9ee1fa