Discriminatory Trade to Hit Ag The Inflation Reduction Act increases taxes and spending but also invites retaliation against U.S. agricultural exports. Agriculture and rural communities will benefit from a $40 billion allocation that boosts conservation spending, biofuel capacity, rural energy, plus forestry and fire management. But its preferential tax credits and domestic content requirements for solar and electric vehicles will invite WTO dispute settlement cases for violating rules against discriminatory treatment. The Act effectively imposes a 10 percent tariff on foreign built electric cars and batteries. Non-FTA trading partners like China and Europe are mostly impacted and will end up reinstating the 25 percent tariffs against U.S...

TAGS – China, North America, Macroeconomics