The EU and US are at odds because of a new US tax rule on electric vehicles. The EU believes that the regulation will discriminate against European automakers and is intended to encourage Americans to purchase electric vehicles.
The US anti-inflation statute fosters innovation in a wide range of fields. Tax reductions are one of them, which helps promote the purchase of electric cars.
With the new law, tax breaks of up to $7,500 are anticipated for automobiles employing North American-made batteries. Due of this, the issue is now a global concern.
The potential for unfair competition brought on by the law worries the European Union (EU) in particular.
“Unacceptable under WTO regulations”
Miriam Garcia Ferrer, a spokesman for the EU Commission, commented on the situation.
The spokeswoman added that foreign manufacturers were being treated unfairly in comparison to US producers and voiced her profound worry about the new trade barrier.
The declaration highlighted that the action would also be against WTO (World Trade Organization) regulations.