Germany and Canada threaten trade war with the US over electric power boost

We are experiencing transformation processes that prepare us for more effective changes in the social and planetary paradigm

It is absolutely natural for everyone to question the future, as the pandemic has undeniably brought structural changes, which certainly already include the economy. We have already gone through times of change and the most important thing right now is that we align ourselves with them. Astrologically, this change that is happening right now, will be understood between 2023 and 2026.

The President of the United States of America (USA) has announced an ambitious project to accelerate the transition to electric cars. The terms of the initiative did not please, neither Germany, nor Canada, nor Mexico, who consider them unfair competition.

The countries’ manufacturers threaten reprisals if the project is approved.

A few days ago, the President of the USA, Joe Biden, presented a project that intends to leverage the transformation of the transportation system, giving special attention to the adoption of electric cars. So, the initiative suggests that significant help be provided, in order to encourage the purchase of these models.

Since conditions are only favorable for electric cars made in the USA, Germany, Canada and Mexico have already shown their displeasure. Furthermore, they threaten reprisals if the project is, in fact, approved.

Under the US President’s proposal, any consumer intending to purchase an electric car will be eligible for an $8,000 subsidy. However, those manufactured in the country may see this value increased by $4,500.

For manufacturers in Germany, Canada, and Mexico, this suggestion represents an act of unfair competition.

Joe Biden wants to subsidize models that are produced entirely in the US

In addition to demanding that the models be made in the US, Joe Biden proposes that only brands whose factories are affiliated with a labor union should be considered. That is, companies like Tesla, Rivian, and Lucid Motors are not eligible.

As mentioned by Ola Kallenius, president of Daimler, in a conversation with the Financial Times, the rules should be the same for everyone. After all, in Germany, for example, cars are subsidized, regardless of where they were made.

Under the terms of Joe Biden’s proposal, companies like Audi will not be eligible for the subsidy. This is because, although it is one of the best-selling brands in the US market – in the plug-in and electric hybrids sector – it does not have factories in the country.

Also, Mercedes, Volkswagen, and Toyota will not be eligible, as they are not unionized. So, even though they make models in the US, they won’t have access to the subsidy.

On the other hand, Ford, which could be one of the brands contemplated, may not have that luck. After all, the proposal of the President of the USA states that models that use parts manufactured from the country will also not be eligible.

Source: With Agencies


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