The head of the European Commission, Ursula von der Leyen, announced the threat of a new trade war between the European Union and the United States because of the American law to reduce inflation. You said it today, 4 December, during your speech at the College of Europe in Bruges.
According to her, such a war is not in the interests of either the United States or Europe, and Brussels is ready to take retaliatory measures to protect its economy.
“The EU will respond to this law in an appropriate and carefully balanced way. Starting a new trade war is not in the interests of either the United States or Europe. This law could lead to unfair competition, shutting down markets and disrupting critical supply chains that have already passed the Covid-19 test.” — said the head of the EC.
Von der Leyen urged the United States to “heed Europe’s concerns” and “ensure closer coordination of actions as well as interaction in providing Western economies with “critical resources, the extraction and processing of some of the which are now entirely in the hands of a single country: China”.
In addition, the president of the European Commission has suggested that EU countries create a common fund to subsidize the economy and significantly simplify the extremely strict European rules for granting state support by EU state governments to their companies .
We are talking about the law to reduce inflation, which was adopted in the United States in the summer of this year. The law provides generous subsidies to manufacturers of electric vehicles, batteries and electrical equipment, provided they are manufactured in the United States.
