The United States "beggar-thy-neighbor" angered Europe, a trade war is imminent?

　　BEIJING, Dec. 5 (Xinhua) -- The U.S. "Inflation Reduction Act" has stirred up waves in the European political arena. The Americans, who insist on going their own way on the road of trade protectionism, are arousing increasingly fierce protests from European allies.

　　The American style of "beggar-thy-neighbor" has angered European lawmakers. Some have called for the prosecution of the United States, while others have proposed countermeasures against the "nuclear option" of the United States. A trade war between Europe and the United States is imminent?

Europe is angry: beggar-thy-neighbor at the expense of others!

　　In August of this year, as soon as the "Inflation Reduction Act" signed by US President Biden came out, it immediately attracted opposition from many countries, because this package worth more than 400 billion US dollars provided generous tax breaks for US companies investing in clean energy. And provide high subsidies for projects such as electric vehicles, batteries and renewable energy in the United States.

　　America's "European partners" complained even more.

Obviously, these tax credits and subsidies will give US companies an unfair advantage and attract related industries from the EU to relocate to the US.

Data map: US President Biden.

Photo by China News Agency reporter Chen Mengtong

　　Many European countries believe that this is a "beggar-thy-neighbor" approach to lure investors out of Europe.

Many people warned that this "protectionist" legislation could be "discriminatory" against European companies.

　　French President Macron has angrily said that the "Inflation Cutting Act" is "extremely offensive" to European companies.

On the first day of his visit to the United States, he said bluntly that the result of the United States' implementation of this bill would be "benefiting others" and warned that the bill would have the risk of "dividing the West."

　　In the face of Macron's appeal, Biden insisted that the United States does not need to apologize to Europe, but can make "fine adjustments", but did not specify specific measures.

　　European Commission President Ursula von der Leyen also issued a stern warning recently that the tax breaks provided by the "Inflation Reduction Act" to consumers who buy American products and to manufacturers who produce these products in the United States may "lead to unfair competition, lead to closed markets, and lead to Critical supply chains are broken."

Europe considering "nuclear option"?

A trade war looming?

　　Von der Leyen said that the U.S. plan has worsened the transatlantic relationship between the U.S. and Europe, making people worried about a possible trade war between the EU and the U.S., and the EU must respond.

Data map: European Commission President Ursula von der Leyen.

　　In the EU's proposal, "taking action on its own" and "protesting against the United States" are two important paths.

　　Von der Leyen believes that competition between the United States and the EU "must respect a level playing field" and that the EU should "rebalance the distorted playing field created by the Inflation Reduction Act and other measures."

　　She proposed that Europe should "adjust its rules so that public investment can take place".

The EU should also increase support for its own industry, invest in renewable energy and lobby the US to address "some of the most worrying aspects" of the bill.

　　Among European lawmakers, there were also calls for a "hard line" in protest against US policy.

　　Bernd Lange, chairman of the European Parliament's international trade committee, said it was a waste of time to urge the United States to amend the bill and that the EU "necessitates a swift complaint to the WTO in the coming months".

　　The speaker of the largest party group in the European Parliament and German MP Markus Faber even shouted that the protectionist policies of the Biden administration are particularly disappointing, and the bill passed by the United States may make Europe's difficult economic situation "worse."

　　Faber said that if the United States does not back down, the EU will have to put all its tough response tools on the table to show that it is ready to use defensive trade tools.

He said, "This is definitely the 'nuclear option', and no one wants to see such a situation in the current situation," but if the United States insists on going its own way on the road of trade protectionism, "it will be reasonable."