“That date is a reasonable limit for retiring” those credits, the special group indicated.
The US government said Friday that the WTO decision is “absurd.”
In a statement, the office of the White House Trade Representative (USTR), Jamieson Greer, sees in the decision “the elements that fuel the doubts that the United States has long had about the ability of the WTO to regulate trade in a world characterized by significant and persistent trade imbalances.”
Meanwhile, the Chinese government applauded the decision. A spokesperson for the Chinese Ministry of Commerce said he hoped the US would respect the ruling.
In March 2024, China filed a complaint with the WTO about some subsidies that the United States provides under the Inflation Reduction Act, namely subsidies for clean vehicles and tax exemptions for renewable energy.
China believes that these subsidies agreed to by Biden’s green plan constitute unfair competition.
The panel did not rule on clean vehicle subsidies because China withdrew that aspect of the lawsuit after Republican President Donald Trump eliminated them in July 2025.
The United States announced in 2022 under the presidency of Joe Biden the massive aid program to support companies in the energy transition sector and electric cars manufactured in the United States.
It was about reacting to China’s subsidies to its industry and launching an ecological strategy.
This US law “established as a condition precedent to obtaining subsidies that products come from specific regions, such as the United States” and excluded those “from China,” the Chinese Ministry of Commerce indicated in July 2024.
The law still exists, but many of its measures were modified or eliminated last year since Donald Trump returned to the White House.
China and the United States can appeal to the appeals body, but it has not been able to issue judgments since 2019 due to a lack of judges, as its appointment is blocked by the US government.
