The Inflation Reduction Act authorizes $370 billion in subsidies to promote a clean energy transition in the U.S. John Avlon: The ostensible purpose is to block China from dominating the market, but European nations stand to be disadvantaged too. Avlonry: The IRA’s “incentives” violate spirit and letter of international trade laws. Biden administration should try to implement the law, which takes effect Jan. 1. It’s far from clear how its provisions could be tweaked administratively.
A likely outcome is that Europe will try to match U.S. subsidies and domestic-content rules. The two sides should avoid a protracted trade battle.
