Financial incentives for the purchase of electric vehicles included in the U.S. Inflation Reduction Act are leading to renewed trade frictions with the EU. While those tensions are significant in and of themselves, they mask deeper problems with how the IRA and climate legislation more generally fit into the global trade regime.
Even a narrow GOP majority in a single congressional chamber could stymie President Joe Biden’s domestic agenda. From a foreign policy perspective, however, divided government does not necessarily hold presidents back. Unsurprisingly, the Biden administration portrayed the results of the midterms as a victory for his foreign policy.
The new Israeli government under Benjamin Netanyahu is anticipated to be different than its predecessors due to the likely inclusion of two ultra-nationalist and Jewish supremacist parties. That will present a challenge to the U.S., in terms of the new government’s more unsavory figures and the policies it is expected to implement.