The European Commission wants the United States to remove a passage on tax breaks for electric car buyers from a bill. The benefits only apply if a certain proportion of the battery parts come from the USA. The Daily EU administration believes that this puts products from outside the US at a disadvantage and insists on bringing the law into line with the rules of the World Trade Organization.
”The European Union is very concerned about this possible new transatlantic trade barrier, ” said a commission spokeswoman. According to her, the part of the law is discriminatory because the tax advantage does not apply to foreign parts.
The proposal is part of president Joe Biden’s major climate, tax and health care plan. The plan allocates hundreds of billions of dollars for investments in the climate. The measures will give a significant boost to the use of solar panels and electric cars, among other things.