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January 18, 2023

IRA - opening salvo in global trade war - Which way will Europe jump?

Report Summary

  • The Inflation Reduction Act began life as a $3 trillion Build Back Better fund, but passed with just $369 billion allocated to energy spending
  • After 40 years of US companies sending manufacturing jobs to China, Mexico, India and Taiwan – the IRA says that the US wants those jobs back – It is too late and it’s not enough money?
  • It will fail to improve on US emissions reduction
  • It will trigger a trade war with China and send most of Asia and Europe to closer relationships with China
  • It will also lead to the end of the World Trade Organization
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