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Significance
The EU worries that the bill will harm the competitiveness of the European economy as it seeks to recover from COVID-19 and the war in Ukraine. Brussels is contemplating various responses, including action at the WTO, new subsidies for EU firms and loosening state-aid rules.
Impacts
The IRA threatens to undermine the competitiveness of German auto manufacturers in the US market, especially regarding EVs.
The IRA could indirectly benefit EU-US trade, especially if it succeeds in hastening economic recovery in the United States.
Should the Republican Party win by a considerable margin in 2024, it would be more likely to repeal the IRA than to modify it.
Keywords:
United States,
Europe,
EU,
EUR,
EU/US,
economy,
industry,
international relations,
aid,
climate,
foreign policy,
foreign trade,
government,
investment,
automobile,
election,
environment,
party
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2022
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