Hyperdrive
EU Warns U.S. Electric-Vehicle Subsidies May Inflame Tensions
- Europe says U.S. credits are discriminatory toward EU firms
- Dombrovskis says American plan inconsistent with WTO rules
Valdis Dombrovskis
Photographer: Valeria Mongelli/BloombergThis article is for subscribers only.
The European Union warned U.S. congressional leaders and members of President Joe Biden’s administration that the aggressive use of electric-vehicle credits in the pending Build Back Better Act could run afoul of international trade rules and create “friction” in the transatlantic relationship.
The EU’s trade chief, Valdis Dombrovskis, sent a letter dated Dec. 3 to officials including Senate Majority Leader Charles Schumer and Minority Leader Mitch McConnell saying that the government subsidies would discriminate against European car manufacturers, according to a copy of the letter seen by Bloomberg.