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France’s Macron signals electric car subsidy concern on agenda with Harris

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MUNICH, Feb 17 (Reuters) – French President Emmanuel Macron signaled on Friday that he would discuss concerns about U.S. electrical vehicle subsidies with Vice President Kamala Harris as they met during the Munich Security Conference.

« We are working hard, » on the issue, Macron said before their meeting.

While EU countries welcome the U.S. commitment to energy transition, they fear the U.S. Inflation Reduction Act’s (IRA’s) $369 billion of subsidies for electric vehicles (EVs) and other clean technologies could put companies based in Europe at a disadvantage.

Harris said they were also going to discuss their commitment to supporting Ukraine against Russia’s invasion but offered no comment about the subsidy issue before reporters were ushered out of a meeting between the two leaders.

The bill is a key part of Biden’s vision to deal with climate change, reinvigorate American manufacturing and compete with China, but it has rankled allies from Brussels to Seoul.

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Macron, who U.S. President Joe Biden celebrated with a lavish state dinner in December, announced around that time that the two leaders had agreed to « fix » issues about the made-in-America EV law. But a solution from Washington that would be acceptable to France has not been forthcoming in the months since.

Reporting by Trevor Hunnicutt and Doina Chiacu; Editing by Alistair Bell

Our Standards: The Thomson Reuters Trust Principles.

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