Analyst Kaush Arha wrote in his article for the American edition: National InterestThat the administration of US President Joe Biden “opened up” the rift between Washington and its traditional allies after the passage of the inflation law.
He recalled that this is a disinflation law that allows, among other things, to expand tax subsidies for the purchase of electric vehicles that use batteries assembled in North America and made from materials made locally in the United States. According to this document, 370 billion dollars will be allocated to achieve clean energy and climate targets, and 64 billion dollars will be allocated to reduce the prices of drugs and health insurance.
The initiative has caused turmoil in the European Union, South Korea and Japan, as Japan’s automakers will find themselves at a huge disadvantage compared to their US rivals.
The publication is an interesting turn for the Biden administration, which criticized the previous administration for engaging in trade wars with its allies and now promises “America is back” and engages in “brutal diplomacy”.
The author also noted that in the midst of the conflict between Russia and China, the American leader and his team actually provoked an economic war with their partners.
old edition of Politico WroteHe said Berlin is starting to prepare for Washington’s reaction to the enactment of the American law on reducing inflation on January 1, which could spark a trade war between the US and the EU.