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A new US incentive scheme to subsidize local electric car makers risks driving a wedge between Western countries, French President Emmanuel Macron warned on Wednesday amid looming fears of a trade war between Washington and Brussels.
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Speaking at the French embassy, during a state visit to America, Macron said the scheme would have a negative impact on the EU by making it less attractive for businesses to invest in the bloc’s economy.
The US Inflation Reduction Act (IRA) offers $391 million of incentives to promote clean energy, including support for electric vehicle manufacturers.
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