UK joins international backlash against US President Joe Biden’s huge package of green subsidies

Britain has joined an international backlash against US President Joe Biden’s billion-dollar package of green subsidies.

International Trade Secretary Kemi Badenoch reportedly wrote to her US counterpart, Katherine Tai, to complain about the structure of Washington’s Inflation Reduction Act (IRA).

As part of the massive economic package, signed into law in August, Biden has pledged $369 billion over the next decade to energy security and climate change programs.

This includes tax incentives, subsidies and loan guarantees, but the legislation has sparked anger from other countries.

The EU and South Korea have both claimed the IRA package could violate World Trade Organization rules and unfairly disadvantage their companies against US rivals.

Ms Badenoch has now added Britain to the list of countries expressing concern about the global impact of Mr Biden’s actions.

In her letter to Mrs. Tai, seen by the Financial timesMs Badenoch claimed the US plan would “damage multiple economies around the world and impact global supply chains in batteries, electric vehicles and wider renewables.”

Much of the international concern over the IRA’s impact has focused on a provision to limit a $7,500 tax break for electric vehicle purchases to vehicles assembled in North America.

This was partly to wean the US from Chinese-produced batteries, but has prevented those countries from having a free trade agreement with America – like the EU and the UK.

The EU is already demanding adjustments to the package to replicate the exemptions already granted to both Canada and Mexico, with Brussels officials in talks with US counterparts.

And Ms Badenoch made it clear that Britain should also receive a special deal.

“The UK, as the closest ally of the US, expects and must be part of all flexibility in the implementation of the IRA,” she added.

A spokesperson for Ms Tai told the paper: “As President Biden has made clear, the United States is listening to the concerns of our allies and partners regarding their concerns about the IRA, and we remain committed to working together on a productive way ahead. ‘