Macron blasts Biden subsidies at start of US state visit

Macron blasts Biden subsidies at start of US state visit
Macron blasts Biden subsidies at start of US state visit

France's President Emmanuel Macron fired a volley at his American hosts on the first day of a rare state visit to Washington, telling lawmakers that US industrial subsidies are "super aggressive" against French competitors.

Macron was referring to Biden's signature policy called the Inflation Reduction Act, which is set to pour billions of dollars into environmentally friendly industries -- with strong backing for US-based manufacturers.

The White House touts the IRA legislation as a groundbreaking effort to reignite US manufacturing and promote renewable technologies, but European Union governments are crying foul, threatening to launch a trade war by subsidising their own green economy sector.

"I don't want to become a market to sell American products because I have exactly the same products as you," said Macron, stressing that France had its own middle class in need of employment.

"And the consequence of the IRA is that you will perhaps fix your issue but you will increase my problem. I'm sorry to be so straightforward," he said.

In a speech later at the French embassy, Macron insisted on the subsidies issue and said they could become a real sticking point in US relations with Europe.

While voicing support for the environmental goals of the IRA, Macron said, "These are choices that will split the West."

Still, Macron said US-French ties remain solid, calling on both countries to heed "the bonds that history has forged between us, an alliance stronger than anything."