Wednesday, February 8, 2023

Biden plays Russian roulette with Europe and opens trade war

Joe Biden It has proposed waging war against Europe in the midst of Russia’s invasion of Ukraine. The President of the United States puts on a suit of protectionism to accommodate inflation, plus it will hurt European exports, Germany’s main economic engine, in a recession.

Biden has promoted the controversial Inflation Reduction Act to start this trade war

Biden has fueled controversy anti-inflation law To add to this trade war, which the US had already started during the toughest years of the crisis of 2008, 2015 and 2020. The plan is simple, to give American production more outlets than other industries and powers.

Thus, the car and European technology will have a new barrier to entry, Although the EU has raised its voice on harming German interests, it did not do so by hacking wine and other Spanish products.

Biden criticized the European Union

Biden thus seeks to sabotage trade agreements and sustainable agreements in the supply chain. One of the strong points of the day will come when it is decided to address the issue. Sustainable Business and Supply Chainas well as the aforementioned US deflationary law, which Brussels describes as protectionist and harmful to European industry.

Joe Biden, President of the United States

Biden’s current rules harm European companies committed to sustainability. In fact, the President of the United States himself promised to reduce the articles to avoid this, though without any specifics.

In this sense, EU complains about barriers imposed on European automakers Electrical, which needs to have its own factory in the country to receive public assistance and tax incentives, among others. Some Spanish companies have done their homework, such as Wallbox, but others have chosen to move production to China for lower costs regardless of the dominant Western power.

Biden calls for manufacturing in America

New regulations will come into force and as mentioned in the investment plan, there is a target to reduce emissions by 40% by 2030. As such, Biden would demand that 40% of vehicles sold in the US be electric.

Similarly, in order to access tax deductions and benefits, companies must produce in the US. Wallbox has shown the way that this is possible with a significant investment of 70 million for its electric chargers, but other companies in this sector have not done so.

At this point, it is clear that if EU companies do not organize, they will miss a historic opportunity as the scheme will be endowed with one trillion dollars, a huge amount to be lost. for now, The consequences are disastrous for Europe, which will have to raise the prices of its industry further. To avoid losing margin or initiating layoffs due to a significant drop in sales. It’s all because of a discriminatory law that puts protectionism back on the map. It should be noted that neither Canada nor Mexico will be affected by this new rule.

Disastrous Biden plan in May

Biden made it clear in May that the US economy is in a stronger position than any other major world power, despite being the first Western power to enter recession in 2022. a scenario that has not yet been technically confirmed by the German economy, although the public body itself warns that it will enter next year with a 100% probability. His battle plan is aimed specifically at benefiting American working families, without looking at the consequences of exporting inflation, as the US typically does to recover its economy.

This action first involves increasing the supply of oil to the market by one million barrels per day. This Through the Strategic Oil Reserve and will be created for a period of six months, In addition, it hopes to add an additional 60 million barrels of oil from allies’ reserves as Europe replenishes reserves in the event of an energy crisis, while it will give the green light to US biofuels starting this summer.

Biden hurt Spain and is now helping Germany

To prevent skyrocketing oil prices, Biden prepares new rates for companies for abandoned wells and agricultural land, As such, it would force companies to produce with excess capacity – more supply – or else to lower prices due to paying taxes.

He also asked Congress to approve investment and tax credits for the purchase of vehicles and clean energy that «reduce our dependence ondespotic ruler» Allow Vladimir Putin and families to save $500 a year for public services. As such, the main losers would be the Japanese and European brands who would see their sales decrease after the implementation of the scheme.

In this sense, it has opened the door for assistance for the purchase of Electric vehicles and charging points, where Wallbox will be one of the main beneficiaries, All this so that by 2030 no fossil fuels will be burnt on the roads. The reality of this plan has shown that inflation is skyrocketing in Europe, while in the US it is falling despite remaining high.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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