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Biden Starts a Climate Trade War

The Wall Street Journal’s Editorial Board writes about Biden’s climate trade war.

The C3 Take
  • Biden’s Inflation Reduction Act (IRA), which provides subsidies for American made electric vehicles and green power sources, is straining relationships with key allies like France.
  • Analysts fear that a trade war may start unless the IRA is rewritten to include concessions for European-made EVs and technologies.
  • While bolstering American manufacturing is a worthwhile goal, it should be accomplished by unleashing free trade, not doubling-down on protectionism.
  • Furthermore, the administration should implement technology-neutral policies to allow the market to pick winners and losers.

“U.S. allies are upset about the Inflation Reduction Act’s generous subsidies for domestically manufactured green technologies. In his trip to Washington last week, Mr. Macron said the U.S. subsidies may ‘perhaps fix your issue but you will increase my problem.’ They’re really a problem for everybody.”

Read the fulla article here.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.

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