The Guardian view on Biden’s ‘Buy America’ strategy: a wake-up call for Europe | Editorial

Huge subsidies for US-based low-carbon manufacturers are posing big problems for EU leaders

In a slick General Motors advert aired during last year's Super Bowl, the actor and comedian Will Ferrell took patriotic umbrage at Norway's ability to sell more electric vehicles per capita than the US. Norway's beating us at EVs!", Ferrell lamented, before promoting GM's latest battery technology to the watching millions.

Almost two years on, the angst is being felt on the other side of the Atlantic. Following on from President Joe Biden's Buy America" rules for infrastructure, his Inflation Reduction Act (IRA) will deliver, from January, almost $370bn worth of subsidies and tax breaks to US-based companies involved in the transition to a low-carbon economy. Around $50bn will come in the form of tax credits to persuade Americans to buy electric vehicles made in North America (Canada and Mexico were included in the deal after initially being left out).