Tensions escalate between Europe and America due to its financial support for companies operating on its soil - Sadahadhramowt | News

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الثلاثاء، 8 نوفمبر 2022

Tensions escalate between Europe and America due to its financial support for companies operating on its soil

Ruxel - Agencies:

Several European leaders have ratcheted up their rhetoric against huge US subsidies for companies on their soil, brandishing them at the World Trade Organization, which heralds a new transatlantic trade dispute.


The escalation of tensions between the two major Western powers comes after the passage of the "Inflation Reduction Act" in the United States during the summer.


This law is the largest investment approved in the fight against climate change, as it allocates $370 billion to build wind turbines and solar panels and support the electric car sector.


Among the measures that have drawn criticism is a tax cut of up to $7,500 for the purchase of an electric car from a North American factory with a homemade battery, thus excluding cars made in the European Union.


This step angers Europe and accuses the United States of providing exceptional support to companies producing on its soil, which is completely contrary, according to the Europeans, with the rules of global trade.

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