US, EU, talk Inflation Reduction Act

President Biden met with European Commission President Ursula von der Leyen on Friday amid increased tension surrounding the Inflation Reduction Act and policies some say undercut trade between the U.S. and E.U. The leaders agreed to launch formal trade talks that will focus on critical minerals, a move that could help both countries reduce their dependence on China, and allow E.U. countries to benefit from Inflation Reduction Act subsidies by more easily accessing American Markets.

The commitment to work towards agreement, which also includes Japan, signals the U.S. and E.U.’s willingness to ameliorate strained tensions. The E.U. has previously criticized the IRA for discriminating against European countries, or even violating international trade rules. Last week the E.U. loosened restrictions on tax breaks and benefits for clean technologies, in hope of matching the new U.S. incentives, which threatened to pull developments in the field out of Europe.  (E&E $, OilPrice, Politico, Wall Street Journal $, Wall Street Journal $, Reuters, FT $, Bloomberg $, NPR, OilPrice)