When senior European and American officials gather in Washington next month, there’s a lot they’re likely to agree on — from vaccines to artificial intelligence. Just don’t bring up subsidies for electric vehicles.
A brewing transatlantic trade spat over the United States’ Inflation Reduction Act (IRA), which provides hefty subsidies for people to buy homegrown cars, is overshadowing one of the core efforts to reset the relationship between Brussels and Washington in the post-Donald Trump era. That’s the view of more than a dozen officials with direct knowledge of those discussions, who spoke about the tensions on the condition of anonymity because the matter is sensitive.
Next month’s set-piece event, known as the EU-U.S. Trade and Tech Council (TTC), involves the likes of Europe’s digital chief Margrethe Vestager and U.S. Secretary of State Antony Blinken meeting twice a year to promote greater cooperation on everything from funding joint telecommunications projects in emerging economies to working together to fight Russian disinformation.