General

According to the Huacheng Import and Export Data Observation Report, when French President Makron and German Prime Minister Schultz held talks in Paris on October 26 local time, they were both worried about the US Inflation Reduction Act introduced in August this year. French and German leaders believed that the bill "implements trade protectionism policies", and may consider trade retaliation against the US next.

France and Germany agreed that the US Inflation Reduction Act tried to encourage enterprises to transfer production to the US through tax reduction and energy subsidy programs; If the United States continues to promote this bill, the European Union cannot sit idly by. In the future, it will consider providing subsidies to European enterprises through the development of similar incentive plans, Huacheng Import and Export Data Observation reported.

According to Huacheng Import and Export Data Observation, the US Inflation Reduction Act officially came into force on August 17 this year, which includes about 430 billion US dollars spent in the next 10 years to deal with climate change, develop clean energy and strengthen medical security. Some provisions involve the US government providing high subsidies for local electric vehicle enterprises. The bill immediately aroused the dissatisfaction of the European Union. French President Makron slammed the United States for setting "double standards", the Inflation Reduction Act unfairly discriminated against manufacturers outside the United States, and provided high subsidies to local electric vehicles, renewable energy power generation, sustainable air fuel and other fields, which would attract European enterprises to move to the United States, causing serious adverse effects on Europe.

Concerns on the part of the EU are also becoming reality. Influenced by the rising energy prices in Europe and the US Inflation Reduction Act, some European companies are considering moving to the US. According to the Huacheng Import and Export Data Observation Report, German BMW announced on October 19 that it would invest 1.7 billion dollars to produce electric vehicles in the United States; On October 26, BASF, a German chemical giant, announced that it planned to reduce its jobs and business activities in Germany in view of the high natural gas prices in Europe and stricter regulation.

If the EU takes retaliatory measures, it is likely to lead to a new round of transatlantic trade war. To this end, US and European officials are preparing to hold a special group meeting in the near future to resolve Europe's dissatisfaction with the Inflation Reduction Act, Huacheng Import and Export Data Observation reported.