London Daily

Focus on the big picture.
Saturday, Mar 21, 2026

Trade war averted? Macron gets Biden to ‘tweak’ his industrial subsidies

Trade war averted? Macron gets Biden to ‘tweak’ his industrial subsidies

The US president conceded there were ‘glitches’ in the roll-out of America’s multi-billion-dollar package of green subsidies.
French President Emmanuel Macron snatched an unexpected win from his U.S counterpart during a visit to Washington on Thursday, getting Joe Biden to suggest that European companies could benefit from a controversial American subsidies package.

Fury has been boiling over in Europe after it became clear that Biden's Inflation Reduction Act — a $369 billion package for green industry — could drain investment out of the EU and into the U.S. Big car-making nations like France and Germany had complained that the U.S. law was potentially illegal for discriminating against foreign companies in the electric vehicle sector and encouraging consumers to "Buy American."

Macron’s visit to the U.S. had been trailed as a doomed last-ditch effort to secure a truce over Washington's largesse before the EU and U.S. would lurch into a subsidy race or full-blown trade war with countervailing tariffs.

Europeans have been pressing to receive the same rights as Mexicans and Canadians to benefit from the green cash bonanza, but with little prospect of success. For weeks, the French have been campaigning for European partners to agree to their own rival subsidy package, including a “Buy European” component.

At an affable news conference with Macron on Thursday, however, Biden conceded way more ground than had been thought possible.

"There's tweaks that we can make that can fundamentally make it easier for European countries to participate and, or be on their own, but that is something that is a matter to be worked out," the American president said. "I never intended to exclude folks who were cooperating with us. That was not the intention. We're back in business, Europe is back in business. And we are going to continue to create manufacturing jobs in America, but not at the expense of Europe."

That question of excluding Europe has been one of the major bones of contention. At a time when Europe has been paying dramatically higher energy prices than the U.S., many Europeans have seen the Inflation Reduction Act as a hostile attempt to profit from European weakness.

Several top European officials have been arguing that the EU and U.S. need to join forces against China instead of competing against each other.

That logic seemed to make headway with Biden. While making "no apology" for legislation that he said was vital to creating U.S. jobs, he noted that parts of the IRA could need a fix. "There's obviously going to be glitches in it and [we] need to reconcile changes in it," he said.

He said exemptions had been made for companies that had free-trade agreements with the U.S. but suggested that this should be extended more generally to "allies."

"There's a lot we can work out," he continued.

Macron also seemed bullish about the way things unfolded.

“We had a very good discussion on the IRA and we decided to synchronize our approaches ... as well as our investments, because we share the same strong will to secure our industries,” said Macron.

It still remains to be seen, however, how much can be achieved in practice and whether Biden was making more concessions in his friendly public appearance with Macron than he will really be able to deliver. He will, for example, be likely to face hostility in Congress over attempts to go back and fiddle with such a landmark initiative as the IRA.

It’s unclear how far Biden's administration will go in resolving issues for the Europeans at a technical level, as teams on either side still need to hash out the details. The U.S. president said the two leaders had agreed to allow their teams to "follow up” on their decisions.

This passes the small print to an EU-U.S. taskforce in charge of leading talks on trying to resolve differences on the package, but EU officials have expressed doubt concerning how much progress can be made at this level.

For the French, Biden’s unexpected concession paradoxically risks undermining Macron’s campaign at home to get the EU to roll out its own protectionist answer to the IRA.

Ahead of the visit, an adviser to Macron was briefing the press that the answer to the IRA “ultimately lay in Europe’s capacity to show it can enter the competition … and that’s the ‘Buy European Act.’”

France’s Finance Minister Bruno Le Maire is set to continue trade discussions with U.S. officials on Friday.
Newsletter

Related Articles

0:00
0:00
Close
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
×