Bernd Lange, who chairs the trade committee in the European Parliament, argues that the bloc and the United States have reached an impasse over the American Inflation Reduction Act, and that Brussels should bring the matter before the World Trade Organization for clarification. He indicates that the current negotiation framework cannot accommodate only modest tweaks to the act’s implementation, and that the core architecture of the legislation is likely to persist regardless of concessions.
In Lange’s view, a rapid escalation to a WTO filing may be necessary in the coming months to determine whether U.S. actions contravene established international trade norms. He also urges Europe to bolster support for its own industrial sectors and to consider policy tools aimed at reducing energy costs for those sectors, noting that energy prices in Europe are significantly higher than in the United States and that this gap affects competitiveness.
Markus Ferber, a fellow European Parliament expert on economic affairs, likewise advocates for a broad set of responses if the United States proceeds with its current framework. He warns that the act could strain transatlantic relations and potentially worsen economic conditions across Europe. Ferber suggests the European Commission should be prepared to expand its trade defense capabilities if Washington does not engage in constructive dialogue with Europe.
There is also mention of significant progress in discussions between the United States and France aimed at mitigating the impact of U.S. inflation-related policy on European economies. France’s financial leadership has signaled that both sides are working toward practical adjustments that could cushion Europe from adverse effects while preserving mutual interests in bilateral trade.