# Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-05 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: EU Tax Credit Tensions with U.S. at Trade Talks Meta Description: EU officials to voice concerns over Biden's climate law cutting off tax credits for U.S. electric vehicles at Monday's trade talks. French and German URL: https://financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-shtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-05t094502z4lynxmpeib4070rtroptp4nato-china-blinken-1736814767648-compressed.jpg) Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S By David Lawder COLLEGE PARK, Md. (Reuters) -Top [European Union](https://www.financedigest.com/lisk-announces-lsk-token-listed-on-bitflyer-the-european-unions-newest-crypto-exchange.html "Lisk announces LSK token listed on bitFlyer, the European Union’s newest crypto exchange") officials are aiming to be more vocal at a trade meeting with their U.S. counterparts on Monday in their criticism of President Joe Biden’s climate law that would [cut off the bloc’s electric vehicles](https://www.financedigest.com/musk-says-tesla-price-cuts-triggered-demand-2023-sales-could-hit-2-million-vehicles.html "Musk says Tesla price cuts triggered demand, 2023 sales could hit 2 million vehicles") from U.S. [tax credits](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official"). The U.S.-EU Trade and Technology Council (TTC), a year-old transatlantic forum for dialogue, [focused in its first two meetings](https://www.financedigest.com/dollar-dips-as-job-openings-fall-fed-meeting-in-focus.html "Dollar dips as job openings fall, Fed meeting in focus") on regulatory co-operation and presenting a united front against China’s non-market economic practices. But the 27-country bloc fears the $430-billion Inflation Reduction Act (IRA) with its generous [tax credits](https://www.financedigest.com/automakers-scramble-to-decode-new-u-s-ev-tax-credits.html "Automakers scramble to decode new U.S. EV tax credits") of $7,500 for Tesla, Ford and other North American-made EVs will significantly damage European automakers. French [Finance Minister](https://www.financedigest.com/scottish-finance-minister-kate-forbes-to-run-for-countrys-leadership.html "Scottish finance minister Kate Forbes to run for country’s leadership") Bruno Le Maire said he and German economy minister Robert Habeck have started talks with their U.S. counterparts on exemption for all EU-made green products. But he also said the EU needed its own equivalent of the IRA. European Commission head Ursula von der Leyen said on Sunday the EU would adapt its [state aid](https://www.financedigest.com/wizz-air-loses-fight-against-67-million-in-state-aid-for-romanian-rival.html "Wizz Air loses fight against million in state aid for Romanian rival") rules to prevent an exodus of investment triggered by the IRA, while offering cooperation over raw materials to counter China’s dominance. The topic is on the agenda of the TTC meeting on the University of Maryland campus in College Park, Maryland, U.S. and EU officials said. Participants include U.S. Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo, U.S. [Trade Representative Katherine Tai and European](https://www.financedigest.com/over-80-of-businesses-forsee-difficulties-in-european-trading-when-the-uk-leaves-the-eu.html "Over 80% Of Businesses Forsee Difficulties In European Trading When The UK Leaves The EU") Commission Executive Vice Presidents Valdis Dombrovskis and Margrethe Vestager. JOINT STATEMENT In a Dec. 1 draft of a joint statement to be issued later on Monday, the two sides are to say, “We acknowledge the [European Union’s concerns](https://www.financedigest.com/european-shares-weighed-by-us-debt-ceiling-concerns-slide-in-financials.html "European shares weighed by US debt ceiling concerns, slide in financials") and underline our commitment to address them constructively. The draft document, which was seen by Reuters and may still be revised, did not set out specific measures. The Inflation Reduction Act will be part of the range of discussions on trade,” a spokesperson for the White House National [Security Council](https://www.financedigest.com/durham-county-council-reduces-data-log-analysis-costs-by-50-with-real-time-analysis-and-security-tool.html "Durham County Council reduces data log analysis costs by 50% with real-time analysis and security tool") said. The U.S. side was “committed to continuing to [understand EU concerns” through a newly established](https://www.financedigest.com/data-experts-challenged-to-establish-link-between-financial-data-and-understanding-society.html "Data experts challenged to establish link between financial data and understanding society") task force, the spokesperson said. The meeting would produce a “joint roadmap” to assess trustworthy [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "Types of artificial intelligence") technologies as well as a task force to reduce research barriers related to quantum computing science and technology, the spokesperson said. [EXECUTIVE ORDER](https://www.financedigest.com/president-trump-signs-executive-orders-on-trade-and-designates-trade-and-customs-law-violations-as-law-enforcement-high-priority.html "President Trump Signs Executive Orders on Trade and Designates Trade and Customs Law Violations as Law Enforcement “High Priority”") ON IRA [European and South Korean officials criticized the Inflation Act at the G20 Summit in Indonesia last month](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks"). During his state visit to Washington last week, French President Emmanuel Macron told broadcaster CBS it was a [“job killer” for Europe](https://www.financedigest.com/ford-to-make-call-on-europe-job-cuts-by-mid-feb-as-buyers-circle-german-site.html "Ford to make call on Europe job cuts by mid-Feb as buyers circle German site"). Biden told Macron in Washington that there could be “tweaks” to the law to make it easier for [European countries](https://www.financedigest.com/four-european-countries-call-for-special-treatment-of-defence-in-eu-debt-rules-document.html "Four European countries call for special treatment of defence in EU debt rules – document") to participate in the credits. French officials said they are [hopeful an executive order from the White House could give European](https://www.financedigest.com/european-shares-rally-as-china-stimulus-lifts-recovery-hopes.html "European shares rally as China stimulus lifts recovery hopes") nations a break, without the need for seeking revisions from Congress, a move the White House wants to avoid. (Reporting by David Lawder; Additional reporting by Foo Yun Chee in Brussels; Editing by Heather Timmons, Clarence Fernandez and Arun Koyyur) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---