Don’t Dismiss Europe’s Objection to ‘Buy American’
• “French President Emmanuel Macron, during his recent visit to Washington, warned that US trade policy could “fragment the West.” That might sound alarmist, but he was right. President Joe Biden’s programs to subsidize clean-energy investment and high-tech manufacturing have much to recommend them — but, executed incautiously, they do pose a threat to international economic cooperation. The White House should heed Macron’s message and guard against this risk.”
• “A big expansion of investment in clean energy is crucial. But the Inflation Reduction Act, which Biden signed into law in August, channels much of its $369 billion outlay to US producers. (For instance, electric cars made in the Us can get up to $7,500 in tax breaks; those made in Europe can’t.) Wherever possible, the IRA’s programs prioritize “Buy American” and, US union labor. The CHIPS and Science Act, meant to support domestic makers of semiconductors, is a similar case. These policies set out to tilt the playing field for international trade, putting foreign producers at a big disadvantage.”
Source : Bloomberg Businessweek December 12,2022 , Page 9