Macron takes gloves off on US subsidies
Biden’s trade policies ‘super aggressive’, French leader says in warning of split
WASHINGTON — French President Emmanuel Macron fired a volley at his hosts on the first day of a rare state visit to the United States, telling lawmakers on Wednesday that US industrial subsidies are “super aggressive” against European competitors.
“This is super aggressive for our business people,” a reporter heard Macron tell members of Congress and business leaders, who had invited him to lunch ahead of the main part of the state visit on Thursday, when the French leader was to spend most of the day with President Joe Biden.
Macron was referring to Biden’s signature policy called the Inflation Reduction Act, or IRA, which is set to pour billions of dollars into environmentally friendly industries — with strong backing for US-based manufacturers.
The White House touts the IRA legislation as a groundbreaking effort to reignite US manufacturing and promote renewable technologies, but European Union members are crying foul, threatening to launch a trade war by subsidizing their own green economy sector.
Macron’s blunt assessment, saying he just wanted “to be respected as a good friend”, tore some of the veneer off a carefully choreographed state visit intended to celebrate historic US-French ties — and also tackle the trickier parts of the US-EU trans-Atlantic alliance.
“I don’t want to become a market to sell American products because I have exactly the same products as you,” said Macron, stressing that France has its own middle class in need of employment. “And the consequence of the IRA is that you will perhaps fix your issue but you will increase my problem. I’m sorry to be so straightforward.”
The White House responded by insisting that the visit is about the two leaders’ “warm relationship”.
US advances in the clean energy economy will help Europeans too, White House Press Secretary Karine Jean-Pierre said. The IRA “presents significant opportunities for European firms as well as benefits to EU energy security. This is not a zero-sum game”.
Real sticking point
In a speech later at the French embassy, Macron insisted on the subsidies issue and said it could become a real sticking point in US relations with Europe.
While voicing support for the environmental goals of the US legislation, Macron said: “These are choices that will split the West.”
Still, Macron said US-French ties remain solid, calling on both countries to heed “the bonds that history has forged between us, an alliance stronger than anything”.
Earlier, Macron joined US VicePresident Kamala Harris at NASA headquarters in Washington to discuss cooperation in space — and to propose the first Frenchman on the moon.
Macron’s busy schedule, which included a working lunch to discuss biodiversity and clean energy, and a visit to the historic Arlington National Cemetery, illustrated the ambitions set for the trip — the first formal state visit by a foreign leader to Washington since Biden took office nearly two years ago.
The core of the visit was scheduled to be on Thursday, including a White House military honor guard, Oval Office talks with Biden, a joint news conference and the first state dinner of Biden’s presidency where Grammy-award-winning musician Jon Batiste will perform.
Everything from the menu to the entertainment to the table settings and other touches for the glitzy dinner were designed by the White House — and first lady Jill Biden — to highlight the ties that bind the US and its oldest ally, France.
Trade tensions, however, are only part of the uncomfortable flip side to the red carpet occasion.
Another gripe in Europe is the high cost of US liquefied natural gas exports — which have surged to help compensate for canceled Russian deliveries.
There is also divergence on how to deal with China. The question — with Washington pursuing a more hawkish tone and EU powers trying to find a middle ground — is unlikely to see much progress, Agence France-Presse commented.