Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Biden, EU chief signal thaw on trade tensions

Biden, EU chief signal thaw on trade tensions

President Joe Biden and top EU official Ursula von der Leyen announced progress in defusing a transatlantic trade dispute Friday and renewed their commitment to back Ukraine against Russia.
In a limited, but concrete step, the two leaders announced after Oval Office talks that negotiations will begin on giving EU producers of critical minerals access to the US market under Biden’s signature program to encourage climate friendly industries.

They also pledged to coordinate generally as both US and EU economies pivot to the booming electric vehicle and other green sectors.

Von der Leyen, president of the European Union Commission, has worked closely with Biden in forging an unprecedented response to the Russian invasion of Ukraine over the last year.

Biden told von der Leyen that the alliance to support Ukraine marked “a new era.”

And in their joint statement later, they said that Russian President Vladimir Putin “thought that he would divide us, and yet we are more united than ever. We stand together in our unwavering support for Ukraine for as long as it takes.”

However, tensions are swirling in Europe over the Biden administration’s landmark Inflation Reduction Act (IRA), a government spending spree championing US manufacturing in climate-friendly technologies.

Amid EU alarm that the subsidies’ “made in America” requirement will hurt European-based energy and auto sectors, the EU is working on its own sets of incentives, such as the Green Deal Industrial Plan, to promote the emerging sector.

The joint statement indicated that Biden and von der Leyen made progress with a deal to start talks on an exemption for European producers seeking to export critical minerals for electric vehicle batteries.

“Today we agreed that we will work on critical raw materials that have been sourced or processed in the European Union and to give them access to the American market as if they were sourced in the American market. We will work on an agreement,” von der Leyen told reporters after meeting Biden.

Their statement said more broadly that “both sides will take steps to avoid any disruptions in transatlantic trade and investment flows that could arise from their respective incentives. We are working against zero-sum competition so that our incentives maximize clean energy deployment and jobs.”

Another difficult area is how to respond to China’s increasingly muscular foreign and trade policies.

The White House said that “challenges posed by the People’s Republic of China” featured prominently in the talks.

Washington has been urging European capitals to take a firmer stand against Beijing — not just diplomatically, but also economically. However, the EU is keen to avoid rupture with China, leaving the transatlantic allies somewhat divided on how to move forward.

Elvire Fabry, an analyst at the Institut Jacques Delors, a Paris-based think tank, told AFP that the White House session was a chance for von der Leyen to show EU desire to work with Washington, “but not in the position of follower, especially when it comes to China.”

“The European position is based on wanting to maintain its own line concerning Beijing.”

However, the US official stressed the cohesion between Brussels and Washington on the overall view of the China challenge.

“There is unprecedented alignment between the US and Europe,” he said, predicting the two leaders will express “a focus on the need to strengthen our economic security, to respond to concrete threats to economic security” from China.

In their joint statement, Biden and von der Leyen made only fleeting mention of China.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
×