On the first day of a rare state visit to Washington, France's President Emmanuel Macron told American lawmakers that US industrial subsidies are "super aggressive" against French and European competitors.
"This is super aggressive for our business people," an AFP reporter heard Macron tell members of Congress and business leaders at a lunch ahead of the main part of the state visit on Thursday, when the French leader will spend most of the day with President Joe Biden.
Macron was referring to Biden's signature policy, the Inflation Reduction Act (IRA), which is set to pour billions of dollars into environmentally friendly industries – with strong backing for US-based manufacturers.
The White House touts the 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 subsidizing 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.
Choices will 'split the West'
US advances in the clean energy economy will help Europeans too, Press Secretary Karine Jean-Pierre said. The IRA "presents significant opportunities for European firms as well as benefits to EU energy security. This is not a zero-sum game."
But in a speech later at the French embassy, Macron said subsidies 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".
Objective Moon
Earlier, Macron joined Vice President Kamala Harris at NASA headquarters in Washington to discuss cooperation in space – and to propose putting the first French person on the Moon.
Macron highlighted the American lunar program Artemis, whose first uncrewed test mission launched in mid-November with participation of the European Space Agency, and said "we are very keen" to join.
"It's very important for us, as long as you can propose a French leader to fly to the Moon quite rapidly," he told Harris, in a nod to French astronaut Thomas Pesquet, who also attended the NASA visit.
Macron's busy schedule, which included a working lunch to discuss biodiversity and clean energy, and a visit to the historic Arlington National Cemetery, illustrated the ambitions set for the trip – the first formal state visit by a foreign leader to Washington since Biden took office nearly two years ago.
The core of the visit will be Thursday, including a White House military honor guard, Oval Office talks with Biden, a joint press conference and a banquet where Grammy award-winning American musician Jon Batiste will perform.
(with wires)
