The trade war between the United States and Europe becomes inevitable. Germany and France are concerned about Washington’s subsidies for the Green Business, which will move to the United States, reports Politico.
European fears are associated with the American package of subsidies and tax benefits in the amount of $ 369 billion to support the “green” business of the United States, which enters into force on January 1. Europeans are concerned that Washington’s scheme will encourage companies to move investments and production from Europe.
This is a serious problem for European countries where many enterprises are in a difficult situation due to energy criticism. France and Germany are especially outraged – the largest manufacturers of electric vehicles. Against the background of high energy prices, leading companies without hesitation will invest in American production.
According to experts, the truce between Europe and the United States seems unlikely. If the conflict is now out of control, then it can lead to a trade war and slide back to the tariff battles of the Eye for Eye of the era of the former US President Donald Trump.
First, the European Union can contact the World Trade Organization to resolve the conflict of Washington and Brussels. If this does not help that Europe can make a response in the form of sanctions and high tariffs on American products and even sue.
Sources claim that some European officials, including the Commissioner for the domestic market Thierry Breton, advocate the creation of the “European Solidarity Fund” to help “mobilize the necessary financing” to strengthen European autonomy in key sectors, such as batteries, semiconductors or hydrogen.