London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Germany’s Habeck pessimistic about US trade dispute, calls for EU measures

Germany’s Habeck pessimistic about US trade dispute, calls for EU measures

Europe fears massive new American subsidy package will drain investment out of the EU.
German Economy Minister Robert Habeck voiced skepticism on Wednesday that the EU could still reach an agreement with the U.S. over a contentious industrial subsidy package and suggested that Europe should respond with its own industrial support measures.

The EU has less than six weeks to convince the U.S. to amend to its Inflation Reduction Act, which grants $369 billion worth of subsidies and tax breaks to U.S. green businesses but is seen by the European side as discriminatory, particularly for encouraging consumers to "Buy American" when it comes to electric vehicles. The Europeans fear this will suck investment out of the EU, and want to qualify for the same terms.

“A solution [with the U.S.] must now be found in a few weeks, otherwise we will be forced to go another way,” Habeck told an economics summit organized by German newspaper Süddeutsche Zeitung.

At the same time, Habeck expressed doubts such a solution could be found, and referred to the fact that a previous trade dispute between the EU and U.S. over airplane subsidies for Boeing and Airbus dragged on for many years.

Elaborating on what alternative path the EU could take, Habeck said that the EU must act to “establish a level-playing field” with the U.S. on incentives for green technologies.

He remarked that the EU had already devised industrial policy measures to boost home-grown production, and offered as an example the European Chips Act that seeks to increase European semiconductor production with public and private investments.

“That's the blueprint of a response” to the U.S. law, Habeck said, adding: “That would be something that I would support.”

German Finance Minister Christian Lindner also raised the possibility of tax cuts on Wednesday to spur investment.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×