In Washington On the first day of a three-day state visit, French President Emmanuel Macron voiced his worries to American lawmakers about the climate policies of the Biden administration giving American businesses an unfair advantage in the developing green energy sector.


At a luncheon with members of Congress and business executives at the Library of Congress, Macron reportedly said, "This is super aggressive to our business people." He warned lawmakers that unless the policies are coordinated internationally, they will "kill a lot of jobs" in Europe.

The remarks made by the French president gave a preview of the trade discussions that are anticipated to come up during President Joe Biden and Macron's bilateral meeting on Thursday.

Why Macron is concerned about Biden's incentives for American businesses

– The topic of dispute for Macron is the Biden Inflation Reduction Act, which the government is implementing after it was approved by Congress this year.

–The $369 billion climate law signed by Biden includes billions in incentives to entice American businesses to produce electric cars, batteries, solar panels, and wind turbines.

– France and other member states of the European Union have expressed concern that American-centric policies may bar European firms from accessing the American green energy market.

– This month, Macron stated, "I believe that this is not in line with the regulations of the World Trade Organization and that it is not in line with friendliness." If the EU were to implement comparable rules promoting European firms, the disagreement runs the risk of starting a trade war.



Lessons from a potential trade war

One of Biden's most notable legislative successes, the Inflation Reduction Act brought about a record amount of climate expenditure.

The quick adoption of electric vehicles and clean energy is the cornerstone of the president's economic strategy, which aims to usher in a new era of American employment.

The president wants to compete with China in industries where the United States lags behind. After Congress approved $52 billion in incentives for the semiconductor industry this year, Biden has also worked to increase the U.S. manufacturing of microchips.

However, the president is learning that his campaign for American innovation in the climate sector isn't getting much traction abroad.

It will be challenging for Biden to address Macron's and other European leaders' concerns while upholding the Inflation Reduction Act's objectives.

A visit to Washington by Macron

– Sens. Chris Coons, D-Del., co-chair of the France Caucus, Joe Manchin, D-W.Va., Bill Cassidy, R-La., and James Risch, R-Idaho, were among the politicians who met with Macron to discuss climate change and biodiversity. He will have a meeting at the Capitol on Thursday afternoon with the leaders of both parties in Congress.

–On Wednesday at NASA headquarters, Macron also had a meeting with Vice President Kamala Harris as part of the French and American space relationship, which dates back more than 60 years.

–Although Macron has visited the White House before for the pageantry, this is the first official state dinner under the Biden administration. 2018 saw Macron's first state dinner, which was hosted by the then-President Donald Trump.

–Following their meeting on Thursday, Biden and Macron will hold a press conference together. The state dinner will be held on Thursday night and is a black-tie affair with a live performance by singer Jon Batiste.

Message they are sending

–According to AFP News Agency, Macron said to lawmakers in response to U.S. climate incentives, "You will perhaps fix your issue, but you will increase my problem." He argued that the bill may provide exemptions for businesses operating in Europe.

–Speaking more generally about climate change, Macron declared that the U.S. and France must "deliver together" and announced a summit this summer in Paris to produce "concrete actions."

–The White House has "every expectation" that the Inflation Reduction Act will be discussed during the Biden-Macron meeting, according to John Kirby, coordinator for strategic communications at the National Security Council.

–mentioning a task force that the president set up to look into European concerns: the US-EU. "We think the IRA is crucial in accelerating the transition to a clean energy, clean environment, and clean economy. And it's not just an American economy that is changing. It involves the entire world."

–At the NASA headquarters, Harris and Macron both referred to France as a "vital ally." She stated that there is "so much potential" to continue collaborating on space efforts.