HM Wilkins Imperial - US Act Comes Under Fire from EU Leaders

Hong Kong, Hong Kong S.A.R., November 11, 2022 --(PR.com)-- A recent report by HM Wilkins Imperial reveals that the Inflation Reduction Act, which has already been legislated by the US, could seriously impact the even playing field for EU countries and may even violate international trade regulations.

According to the report, the Act, which was voted in by US lawmakers in August, covers a vast area of trade. It aims to regulate energy related legislation as well as increase tax credit for renewable energy undertakings. Tax credits will also be extended to storage projects and manufacturers of solar panels and inverters. Under the new act, there will be greater tax incentives for electric vehicles and other products related to the renewables industry.

However, HM Wilkins Imperial analysts noted that many of these provisions for substantial green subsidies provided for in the act could discriminate against EU automotive, energy and renewables industries.

“Tax credits for electric vehicles manufactured in the US would put a huge dent in the demand for EU produced vehicles,” says Mr. Marcus Steele at HM Wilkins Imperial.

The report noted that EU leaders have come together to create a task force to address their concerns about the potential damage the Act could do to the region’s economies.

“The EU is already battling a slew of economic challenges at this point,” says Mr. Steele, “The EU has shown over the years that it is committed to maintaining an open economy. What it does not want is to be taken advantage of by other countries that appear to be more dedicated to protectionism.”

China and the US have both been moving to protect their industries and cultivate a more inward centric approach to trade. HM Wilkins Imperial analysts believe the US’ Inflation Reduction Act could significantly impact EU automotive manufacturers that are focusing their production on electric vehicles.