France plays bad cop as transatlantic trade tensions ramp up

Politico ^

[FarCenter]

President Joe Biden needs to watch out; France is resuming its traditional role as Europe's troublemaker on the transatlantic trade front.

It had seemed like the bad blood between Brussels and Washington was easing on Biden's watch. Facing a common foe in China, the EU and the U.S. last year struck a truce on the tariffs that former President Donald Trump slapped on European steel and aluminium. Over this year, Russia's war against Ukraine has meant that America and Europe needed to present a united front, at least politically.

Cracks are now starting to re-emerge, however. The EU is furious that the U.S. is pouring subsidies into the homegrown electric car industry. Accusing Washington of protectionism, Europe is now threatening to draw up its own defenses.

Unsurprisingly, French President Emmanuel Macron is leading the charge. “The Americans are buying American and pursuing a very aggressive strategy of state aid. The Chinese are closing their market. We cannot be the only area, the most virtuous in terms of climate, which considers that there is no European preference,” Macron told LesEchos.

Upping the ante, he called on Brussels to support consumers and companies that buy electric cars produced in the EU, instead of ones from outside the bloc.

There are good reasons why the Europeans are fretting about their trade balances.

The war has delivered a huge terms-of-trade shock, with spiraling energy costs hauling the EU into a yawning bloc-wide trade deficit of €65 billion in August, from only €7 billion a year earlier. In one manifestation of those strains, Europe’s growing reliance on American liquefied natural gas to substitute for lost Russian supplies has re-ignited tensions.

Macron’s comments are a reflection of EU consternation over Washington’s Inflation Reduction Act, which incentivizes U.S. consumers to “Buy American” when purchasing a greener car.

[Gen.Blather]

It’s hard to understand from the perspective of a news consumer what various political efforts mean for the health and well-being of the United States. This is especially true of anything, say, the UN does. Then one day, it dawned on me that if France supports it, it’s bad for the US. This simple rule has never betrayed me. I think they’re still angry and embarrassed they had to have their posterior pulled out of the coals, not once but twice by the US*. As my mother said, “No good deed goes unpunished.”

* Yes, I’m aware that none of this would have happened without England, Canada, Australia, New Zealand et. al. But, then none of them, even in concert, could have pulled it off without the US.

[Agatsu77]

So this has not changed my thoughts on France and Belgium. They can F-off. Those POSs need us WAY more than we need them.

[moovova]

No worries. The French Biden will surrender.

(See Afghanistan.)