Europe continues to fear the impact of the Inflation Reduction Act.

The so-called IRA is a huge stimulus package for the United States designed to boost industry through turbulent times.

Amongst other measures, it will offer subsidies to ‘green’ industries like electric car manufacturers.

The US Environmental Protection Agency calls it “the most significant climate legislation in U.S. history”

But Europe fears it will cut its industry out of the US market.

One EU diplomat said it is “protectionism on the American side. There is no other word to it”.

Following a meeting with French President Macron last week, President Biden promised to ‘tweak’ the multi-billion Inflation Reduction Act to “make it easier for European countries to participate”.

The European Union is still waiting to see what that might mean in reality.

In a speech at the weekend, the President of the European Commission, Ursula von der Leyen, said, whilst an “actual war” is raging in Ukraine, the last thing we need now is a trade war with the USA.