The EU executive blasted the law as a “new and significant transatlantic trade barrier by the US”.
Bernd Lange, the European Parliament’s trade committee chair, told Politico: “We could do without an additional trade irritant between partners in such a very difficult global context.”
The Commission is also threatening the US with legal proceedings before the World Trade Organisation.
The EU car lobby ACEA said the measures breached WTO rules and would slow down consumer shift towards electric vehicles.
Adam Hodge, a spokesperson for the office of Trade Representative Ms Tai, defended the legislation.
He said: “This bill provides strong incentives to reduce our dependence on China for the critical materials that will power this key industry, and we look forward to working with allies and partners to advance our climate goals, strengthen and diversify our supply chains, and address our shared concerns with China’s non-market policies and practices.”
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