Things could take off after the midterm elections: Europeans threaten Biden with a trade war That’s why the ‘fatal elections’ are not fair – in 6 points

On the surface, no one wants to arouse suspicion: in Brussels and the European capitals, people are very happy to have a reliable partner in the White House again in US President Joe Biden. Gone are the days under Donald Trump, when they maneuvered themselves on the brink of a trade war.

Behind the scenes, however, the transatlantic relationship is increasingly cracking, including under Biden. The anger has now grown to such an extent that the harvest could run out after the midterm elections at the latest.

No Salvation Army: US will supply gas, but not at a “friendship price”

Take gas prices, for example: thanks to American liquefied natural gas (LNG), Europe was able to become more or less independent of Russian pipeline gas in record time. But: Washington pays a lot for these supplies. In fact, high liquefied gas prices in the US are one of the reasons energy costs are skyrocketing in Europe. The Americans are not about to introduce a ‘friendship discount’ for their allies any time soon. Nota bene, while they sell their gas at home at a lower price. In Brussels, this is considered unfair: competition with the same level playing field is no longer possible under these conditions of different energy prices.

Even more serious than the gas dispute, however, is the anger over the $460 billion economic and subsidy package announced in August. This provides tax breaks and subsidies for companies if they settle in America or move their production there. The EU struggles with this kind of location policy. Under the slogan ‘Buy American’, Biden does nothing but continue the protectionist ‘America First’ agenda of predecessor Donald Trump.

France is ready to consider countermeasures

Especially in the field of electric cars, there is now a tangible clash: Biden has ensured that every American can deduct $7,500 from their taxes if they buy an electric car “Made in the USA”. This is of course at the expense of the European car industry, for which the US is a large market.

There are already reports that US automaker Tesla is considering building a battery factory in Germany in favor of relocating to the United States. French Economy Minister Bruno Le Maire said on Monday that he is fighting for an investment from a company looking to move to the United States. In France alone, some ten billion euros and 10,000 jobs are at risk from the US subsidy program. The Frenchman warned of a “subsidy race” and called for “a coordinated, united and strong response to the United States”.

Germany’s finance minister, Christian Lindner, took a more moderate tone, but had the same meaning: he wasn’t sure the US realized the level of concern in Europe over the subsidy program, Lindner said on the sidelines of a ministerial meeting. In Brussels. Without falling into “like you do me, like me you” logic, the people of Washington should know that the EU is quite “capable of acting,” the FDP minister said.

Lindner didn’t say what exactly is meant by “able to act”. But one thing is clear: the EU is letting the US know that it is ready to take countermeasures. In addition to a lawsuit before the World Trade Organization (WTO), this could also include restricting imports of US electric cars or auto parts. Some countries have already asked for action behind closed doors. It would be a return to a development that has brought Europe and the US to the brink of a trade war under President Donald Trump.

But it’s not there yet: US Trade Representative Katherine Tai defended the multi-billion dollar subsidy package in an interview with the Financial Times last week. At the same time, she was confident that the talks would lead to an amicable solution.