Dec 6, 2022
By Mish Shedlock of MishTalk US allies are steaming mad at Biden for his climate change war. Let's discuss who fired the first shot and who is escalating the war. The Wall Street Journal comments Biden Starts a Climate Trade War Wasn't President Biden going to end Donald Trump's destructive trade wars against allies? Apparently not. His "super aggressive" climate protectionism-to quote French President Emmanuel Macron-is infuriating U.S. friends and may set off a subsidy and tariff war. U.S. allies are upset about the Inflation Reduction Act's generous subsidies for domestically manufactured green technologies. In his trip to Washington last week, Mr. Macron said the U.S. subsidies may "perhaps fix your issue but you will increase my problem." They're really a problem for everybody. The dispute involves tax credits for electric-vehicle and battery production. The IRA's $7,500 consumer tax credit are restricted to EVs assembled in North Ameri