Rabe weighs in on proposed tax credit for union-made electric vehicles

December 2, 2021 The Washington Post

Barry Rabe spoke to The Washington Post on the international trade consequences of a key climate provision in the Democrats’ $2 trillion social spending bill that would see tax credits for union-made electric vehicles.  

Commenting on concerns raised by many foreign diplomats that the bonus credit goes against international trade agreements that discourage favorable treatment for domestic products, Rabe said, “I don't expect major trade wars anytime soon, but I think this would be part of a growing tension or friction." Rabe also noted that this could hinder efforts by the United States to impose a carbon border adjustment tariff on goods from countries that lack stringent emission policies.