The Inflation Reduction Act (IRA) in the US, which was approved in Aug last year to start from Jan this year, introduces $369 billion of investment and tax breaks over ten years to fund green energy projects and accelerate the shift towards electric vehicles. It is worrying for the EU a UK exporting to the US, as it is a protectionist measure whichever way we see it. This act also impacts any other country exporting into the US on specific products; for example, the act offers tax credits and grants to domestic steel made using green hydrogen instead of coal. This is expected to boost the demand for green steel and create a competitive advantage for US domestic production over imported steel.
Great green initiative, but very controversial for foreign companies already struggling to break into the US market. One to keep an eye on
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