Trade
EU Can’t Afford Trade War in US Subsidies Clash, Vestager Says
- Vestager says unclear what Buy European Act would achieve
- EU should recognize US climate efforts, competition chief says
Margrethe Vestager
Photographer: John Thys/AFP/Getty Images
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The European Union’s competition chief warned against the risk of unleashing a trade war with the US, just as Emmanuel Macron is calling for the bloc to respond to Joe Biden’s green subsidy package during a trip to Washington, DC.
Margrethe Vestager told reporters in Paris that the so-called Inflation Reduction Act could be very damaging for European businesses, as well as in other major economies, including Japan and South Korea. But she said it is an absolute priority to avoid a subsidy race and the EU is working constructively with the US to find solutions as soon as possible.