German Chancellor Olaf Scholz warned on Tuesday (11) that the gigantic US investment plan for the climate transition could provoke “a huge tariff war” by discriminating against foreign companies.
Ratified this summer (winter in Brazil), the Inflation Reduction Act launched by President Joe Biden is considered the biggest investment ever made in the fight against climate change. It foresees US$ 370 billion (about R$ 1.9 billion) for the construction of wind farms, solar panels and electric vehicles.
Some devices generated discomfort abroad, such as the tax deduction for the purchase of an electric car manufactured in the United States, with a battery also produced in the country.
“We will talk in more depth about the law on reducing inflation with our American friends,” Scholz said at a meeting of the federation of engineering and mechanics, the VDMA, in Berlin.
“Politicians in every country can’t say, ‘We’ve put climate protection in place, dear industry, do you hear that we’re protecting you from the competition of others?'” he added.
“We would have a huge tariff war,” warned Scholz, whose country is home to auto giants Volkswagen, BMW and Mercedes, in a call for closer international cooperation on climate and trade protection measures.
Last month, European Trade Commissioner Valdis Dombrovskis told Bloomberg news agency that the European Union’s 27 member states were concerned “about a certain number of discriminatory elements”, adding that the bloc would assess whether the new US law violates block rules.
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