London Daily

Focus on the big picture.
Tuesday, Mar 21, 2023

Congressional Democrats: Not a chance of reopening climate law

Congressional Democrats: Not a chance of reopening climate law

The president has been clear about his support for establishing a U.S. manufacturing base for electric vehicles.

Members of Congress have an answer for French President Emmanuel Macron’s pleas for a relaxation of U.S. green-energy subsidies: “Non merci.”

Macron is using his visit to Washington this week to ask President Joe Biden to back off the “Made in America” requirements of the new U.S. climate law. European leaders say those provisions discriminate against the EU electric vehicle manufacturers and other clean industries — and raise the danger of a transatlantic trade war.

But key Democratic lawmakers have little appetite for amending the landmark law.

The legislation’s $369 billion in climate investments provide subsidies for U.S. green industry and offer a hefty consumer tax credit for electric vehicles built in North America. And that’s exactly how it should work, the Democrats say.

“I’m not reopening this law. We’re not going to reopen the text of it,” said Sen. Ron Wyden (D-Ore.), the Senate’s chief tax and trade lawmaker. He said the legislation was meant to create “more good-paying American jobs.”

Sen. Debbie Stabenow (D-Mich.) also dismissed the chances of Congress amending the law to accommodate automakers based in the EU and other U.S. allies, which want the electric vehicles they make overseas to qualify for the maximum $7,500-a-vehicle tax credit.


Sen. Debbie Stabenow speaks at a press conference at the U.S. Capitol.

Those imported electric vehicles qualified for U.S. clean energy tax credits for years, before Biden signed his prized Inflation Reduction Act. The legislation’s explicit goal was to create more U.S. manufacturing jobs.

“We’d love to have them come and build plants here and then be a part of it,” Stabenow said of the foreign automakers. But “we’re not going to be” changing the law.

Rep. Dan Kildee (D-Mich.), a member of the House Ways and Means Committee, said European partners “have long engaged in substantial investments in their domestic industries.”

“With the Inflation Reduction Act, we are investing to ensure that America, not China, leads the transition to electric vehicles,” he added.

The brewing fight over U.S. electric vehicle tax credits and other provisions in the Inflation Reduction Act is posing a new threat to transatlantic trade relations not seen since former President Donald Trump was in the White House. Even as Democrats talk up the need for better economic cooperation with allies post-Trump, the EU and other economies with substantial auto industries will be hard-pressed to find a sympathetic ear on Capitol Hill.

Democrats, who will maintain control of the Senate next year, will not want to reopen one of the Biden administration’s greatest legislative achievements. Republicans, set to take narrow control of the House and generally opposed to the broader climate legislation, could be reluctant to push for an amendment at the behest of foreign interests.

Biden has been clear about his support for establishing a U.S. manufacturing base for electric vehicles.

“Just like over the last century, American workers built carburetors. Now American workers are gonna build vehicle batteries in a new clean energy economy,” he said in a speech in Michigan on Tuesday.
President Joe Biden speaks about manufacturing jobs and the economy in Bay City, Mich., on Tuesday.


The United States and France will issue a joint statement from the Biden-Macron meeting, but barring a major surprise it is not expected to include a breakthrough on Europe’s concerns. Still, the U.S. and EU will continue a bilateral dialogue on the issue that Biden administration officials insist has been “productive,” even though no resolution has emerged yet.

France and other European nations are meanwhile coalescing around their own response. Macron argues that the IRA is “not in line with the rules of the World Trade Organization,” as he put it in early November in France during a meeting with industry representatives.

And French Trade Minister Olivier Becht said the European Union, which sets trade policy for the 27-nation bloc, may resort to “coercive” trade measures if the U.S. doesn’t modify or reinterpret the law so that “European companies benefit from the same conditions as American companies.”

Wyden said Europe only has to look in the mirror, especially when it comes to how the EU has targeted American big tech firms with digital taxation rules.

“If anybody is talking about coercion, what I’ve seen is what they’ve been doing in terms of digital taxes and harming our high-skill, high-wage job sector,” he said. “So if you want to talk about examples, that’ll be the first one that comes to mind.”

The White House has said it is ready to hear Macron out.

“The bottom line for us, is first of all we want to understand the concern,” said White House National Security spokesperson John Kirby. “We’re absolutely willing to have that conversation and to find a way to work through those issues of concern.”

But in the face of what is shaping up to be a clean energy subsidy race, the Biden administration’s line is that there’s no downside to more government support for climate initiatives.

“Our perspective is if you look at the economics of this, if you look at the amount of need around clean energy investments, around renewables investments, around EVs, there’s just a huge amount to be done — and more, frankly, to be done than the market would provide for on its own,” a senior administration official said on a call with reporters.

Former Vice President Al Gore weighed in on the American side Tuesday, telling a POLITICO sustainability summit in Brussels that the EU and other governments should “match what the U.S. has done.”

The numbers on auto trade also hamper the case for the U.S. to amend the law.

In 2021, EU nations, led by Germany, shipped about $22 billion more automobile exports to the U.S. than America sent to Europe.

The EU, as a bloc, also imposes a 10 percent tariff on cars from the U.S. while the U.S. imposes only a 2.5 percent tariff on European car imports. The U.S. auto trade deficit is one reason Trump threatened to impose a 25 percent tariff on European autos, although he never followed through on that.

President Joe Biden, right, shakes hands with French President Emmanuel Macron, center, during the G-20 leaders' summit in Indonesia on Nov. 15, 2022.


A big breakthrough for Macron would be some kind of concession that allows European companies the same IRA tax benefits as American, Canadian and Mexican companies enjoy. But for now, that seems unlikely.

A French official confirmed they are working with the EU to persuade Biden to make changes, while moving ahead with efforts to forge a “Buy European Act” back home to respond to the increased U.S. competition. “We don’t expect these concessions to be announced soon or during the visit. But it is what we are advocating,” the official said.

In theory, the Treasury Department, which is implementing the law, could come up with an interpretation of the law’s text that allows European vehicles to access the subsidies. But that would surely anger U.S. unions, whose support Biden needs going into reelection. And Treasury Secretary Janet Yellen has downplayed the chances of that, saying in October that the law “is what it is.”

Still, Europe is not the only ally that is upset. Both Japan and South Korea are urging the administration to implement the law in a way that minimizes the impact on foreign suppliers who have made investments to build facilities in the United States.

South Korean automaker Hyundai, for example, announced plans in May to invest $5.54 billion to build new electric vehicle and battery manufacturing plants in Georgia that are expected to create 8,100 new full-time jobs.

But that facility won’t begin producing electric vehicles until 2025, so it wants the Treasury Department to either delay implementation of a North American final assembly requirement or provide a waiver for companies that announced investment plans before the new law went into effect.

Toyota, which says it has invested more than $36 billion in U.S. automotive production facilities since 1998, is spending $3.8 billion on a new plant in North Carolina that is expected to create 2,100 jobs building batteries for about 1.2 million vehicles each year. But it also is not expected to become operational until 2025.

The automakers may have more luck on that front with Treasury. “There’s discussions about giving them more time,” Stabenow confirmed on Capitol Hill.

The Treasury Department is expected to issue guidance on how it will implement the new law by the end of the year, providing several more weeks for foreign governments and car companies to lobby the Biden administration on the issue.

Treasury did not immediately respond to a request for comment.

Newsletter

Related Articles

London Daily
Close
0:00
0:00
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
You're Beautiful - James Blunt (Boyce Avenue acoustic cover)
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
You Are So Beautiful
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
Postmodern Jukebox European Tour Version
Paris Rioting vs Macron anti democratic law
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
'Sexual Fantasy' Assignment At US School Outrages Parents
Sattahip Motor Show 20
Orbán Viktor: the restructuring of the power relations in the whole of Europe is taking place
SONATE AU CLAIR DE LUNE - Moonlight sonata
Credit Suisse to borrow $54 billion from Swiss central bank
A kiss to build a dream on
The BBC problem about China
Wiz Khalifa - See You Again ft. Charlie Puth, Furious
Strikes-Hit UK Pledges 94 Billion Euros In Cost-Of-Living Budget
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Russian Hackers Preparing New Cyber Assault Against Ukraine
Mean Blues
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
La Chansonnette
UK face biggest fall in spending power for 70 years
Pattaya Addicts
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Franz Liszt - Liebestraum - Love Dream
If this was in Tehran, Moscow or Hong Kong
Dream a little dream of me
Announcing GPT-4
Tu Vuo' Fa' L'Americano - Hetty & the Jazzato Band
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Unchained Melody sung like you've NEVER heard!
Drew Barrymore
Dave Brubeck - Take Five
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
A brief banking situation report
Rondo Alla Turca
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Kiss of fire
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Ed Sheeran - Perfect (Amadeus violin cover instrumental)
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Israel Cachao López - Guajira Clásica
Silicon Valley Bank exec was Lehman Brothers CFO
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Strauss - Radetzky March - Karajan
Saudi Arabia has announced a major breakthrough in diplomacy with Iran after two years of intense talks
La vie en rose
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Despacito (Piano Cover) - Peter Bence
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Elon Musk Is Planning To Build A Town In Texas For His Employees
Orlando Cachaito Lopez Redencion
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Edith Piaf - NON, JE NE REGRETTE RIEN
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
RADETZKY MARCH-2008-Wien, New Year Concert
Fitness scam
Only you (And you alone)
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Strangers In The Night
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Charles Aznavour - La Boheme
Banking regulators close SVB, the largest bank failure since the financial crisis
Summer time
Watch: “They are wounded but unbowed, unbreakable.”
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
Aux Champs Elysees
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
La Mer (Beyond the Sea) – Avalon Jazz Band
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
She
Motorist fined £650 after council ‘paints disabled bay around his car
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Brexit Deal Falls Short: UK Regains Few Pre-Brexit Benefits
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Radiohead - Creep
Brexit is done (sort of), again
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Perhaps, Perhaps, Perhaps - Multi-Couples
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Pentatonix Havana
JPMorgan has become the first City of London forecaster to predict that Britain will stay out of recession in 2023
Paula Cole - Autumn Leaves
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
Oscar Benton Bensonhurst Blues
It's the question on everyone's lips: could a four-day workweek be the future of employment?
OH NANANA vs ABUSADAMENTE
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
NIGHTWISH - The Phantom Of The Opera
Motorshow 2016 Tanjay Negros Oriental
Monica Bellucci - Ti Amo
Michael Jackson - Billie Jean Milena The Voice France 2018
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×