London Daily

Focus on the big picture.
Wednesday, Oct 07, 2026

Biden, EU chief signal thaw on trade tensions

Biden, EU chief signal thaw on trade tensions

President Joe Biden and top EU official Ursula von der Leyen announced progress in defusing a transatlantic trade dispute Friday and renewed their commitment to back Ukraine against Russia.
In a limited, but concrete step, the two leaders announced after Oval Office talks that negotiations will begin on giving EU producers of critical minerals access to the US market under Biden’s signature program to encourage climate friendly industries.

They also pledged to coordinate generally as both US and EU economies pivot to the booming electric vehicle and other green sectors.

Von der Leyen, president of the European Union Commission, has worked closely with Biden in forging an unprecedented response to the Russian invasion of Ukraine over the last year.

Biden told von der Leyen that the alliance to support Ukraine marked “a new era.”

And in their joint statement later, they said that Russian President Vladimir Putin “thought that he would divide us, and yet we are more united than ever. We stand together in our unwavering support for Ukraine for as long as it takes.”

However, tensions are swirling in Europe over the Biden administration’s landmark Inflation Reduction Act (IRA), a government spending spree championing US manufacturing in climate-friendly technologies.

Amid EU alarm that the subsidies’ “made in America” requirement will hurt European-based energy and auto sectors, the EU is working on its own sets of incentives, such as the Green Deal Industrial Plan, to promote the emerging sector.

The joint statement indicated that Biden and von der Leyen made progress with a deal to start talks on an exemption for European producers seeking to export critical minerals for electric vehicle batteries.

“Today we agreed that we will work on critical raw materials that have been sourced or processed in the European Union and to give them access to the American market as if they were sourced in the American market. We will work on an agreement,” von der Leyen told reporters after meeting Biden.

Their statement said more broadly that “both sides will take steps to avoid any disruptions in transatlantic trade and investment flows that could arise from their respective incentives. We are working against zero-sum competition so that our incentives maximize clean energy deployment and jobs.”

Another difficult area is how to respond to China’s increasingly muscular foreign and trade policies.

The White House said that “challenges posed by the People’s Republic of China” featured prominently in the talks.

Washington has been urging European capitals to take a firmer stand against Beijing — not just diplomatically, but also economically. However, the EU is keen to avoid rupture with China, leaving the transatlantic allies somewhat divided on how to move forward.

Elvire Fabry, an analyst at the Institut Jacques Delors, a Paris-based think tank, told AFP that the White House session was a chance for von der Leyen to show EU desire to work with Washington, “but not in the position of follower, especially when it comes to China.”

“The European position is based on wanting to maintain its own line concerning Beijing.”

However, the US official stressed the cohesion between Brussels and Washington on the overall view of the China challenge.

“There is unprecedented alignment between the US and Europe,” he said, predicting the two leaders will express “a focus on the need to strengthen our economic security, to respond to concrete threats to economic security” from China.

In their joint statement, Biden and von der Leyen made only fleeting mention of China.
Newsletter

Related Articles

0:00
0:00
Close
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
×