“We intend upon implementing these provisions and look forward to dialogue,” Mr. Podesta added. “But we think that not only will these be drivers in the U.S. economy, but ultimately these are going to have tremendous benefits across the globe as we drive down the price of clean energy and clean energy technology.”
In its discussions with the Europeans, the Biden administration has focused on the other benefits of the new climate legislation for global businesses, and on emphasizing the need for cooperation to combat climate change, people familiar with the discussions said.
Privately, American officials and business leaders have also pointed to recent situations in which the Europeans took protectionist trade stances that rankled other governments — such as the E.U.’s carbon border adjustment mechanism and a proposed digital tax.
“It’s rich that President Macron is criticizing the United States for not coordinating with Europe while Brussels has steadfastly refused to discuss a lengthy list of regulations that threaten to discriminate against American companies,” said Jake Colvin, the president of the National Foreign Trade Council, which represents major multinational businesses.
The split over the automotive industry comes as the United States is also seeking Europe’s help on limiting the kinds of advanced technology that China can access globally, especially the machinery for producing advanced semiconductors that is marketed globally by Dutch firm ASML.
Senior U.S. officials have flown to Europe in recent weeks to press E.U. officials and corporate leaders to join the United States in tightly restricting exports of semiconductor technology to China, arguing that China’s access to such technology poses a national security threat.
At her meeting with Mr. Le Maire at the Group of 20 summit in Bali last month, Ms. Yellen noted that America’s relationship with France is critical at such a pivotal time for the global economy. She said that she was open to hearing the concerns that Europeans have about the Inflation Reduction Act and trying to address them, if possible, within the limits of the law that Congress passed.
“France is America’s oldest friend and ally, and we’re looking forward to continuing to build on our very strong relationship,” Ms. Yellen said.
Zolan Kanno-Youngs contributed reporting.
