France and Germany expect an aggressive response to the U.S. Inflation Reduction Act (IRA), the two countries' finance ministers said.

French Finance Minister Bruno Le Maire and his German counterpart Robert Habeck are planning a trip to the U.S. in January to defend European interests.

Earlier this month, U.S. President Joe Biden said new laws that encourage domestic production of computer chips and renewable energy components were not meant to exclude European allies and could be changed. Biden did not specify what adjustments might be made, and the legislative options could be small. There is little desire on Capitol Hill to reopen the fiercely debated bills.

But France is insisting that the White House use the executive branch to loosen some of the incentives in the Inflation Reduction Act, a source in the French government told Reuters. Europe says a law that encourages domestic production could restrict trade.

Le Maire and Robert Habeck promised new measures to support the EU's green industry.