All is not well between the UK and US

Kemi Badenoch had a go at the US last night.

Speaking at an event yesterday, Badenoch predicted that the US’ new flagship Inflation Reduction Act would not help the US counter the rise of China and would instead create a single point of failure in key supply chains. Badenoch also insisted that the UK is not just sitting on the sidelines.

The comments came mere minutes after the US ambassador to the UK mounted a spirited defence of the IRA at the same time.

The Act offers billions in subsidies and tax credits to try and incentivise take-up of electric vehicles and build up green infrastructure. However, European and British carmakers are particularly concerned about the impact on their own industries.

In her speech Badenoch said that Britain-which has been consistently lobbying against the plan but has not prepared its own subsidies-is working “very well with a group of like-minded countries who are worried about the Inflation Reduction Act.”

“We are working with the EU, Japan, South Korea and other countries to find a solution. The US  is onshoring in a way that could create supply chain problems for everybody else. And that will not have the impact they want it to have, given the challenge China presents.”

A complete contrast to the US ambassador to the UK, Jane Hartley, who argued that the plan could have positive implications for countries beyond the US through providing a huge amount of money, R & D, with huge improvements in technology. Technology that Hartley insists would be used by everyone.

An interesting divergence between the UK and the US. It will be interesting to see whether or not this remains or if other things will change the perception.