EU Warns U.S. Electric-Vehicle Subsidies May Inflame Tensions

The European Union warned U.S. congressional leaders and members of President Joe Biden’s administration that the aggressive use of electric-vehicle credits in the pending Build Back Better Act could run afoul of international trade rules and create “friction” in the transatlantic relationship.

The EU’s trade chief, Valdis Dombrovskis, sent a letter dated Dec. 3 to officials including Senate Majority Leader Charles Schumer and Minority Leader Mitch McConnell saying that the government subsidies would discriminate against European car manufacturers, according to a copy of the letter seen by Bloomberg.

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