Some European companies that produce steel, fertilizers and other important commodities for the global economy are moving their production sites to the United States due to high energy prices. Thus, the US economy turned out to be one of the main beneficiaries of the European energy crisis.
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As volatile energy prices and persistent supply chain problems threaten Europe with what some economists say could be a new era of deindustrialization, Washington has introduced a range of incentives for manufacturing and green energy.
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So, at the beginning of this year, the Danish jewelry company Pandora and the German auto concern Volkswagen announced the expansion of production in the United States. Tesla is suspending plans to manufacture batteries in Germany as it expects to receive tax breaks under an inflation reduction law signed by US President Joe Biden in August.
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Analysts say Europe remains an attractive market for advanced manufacturing and has a highly skilled workforce. With pent-up demand caused by the coronavirus pandemic, many companies facing soaring energy prices have shifted production costs to consumers. However, this strategy will cease to work if the rise in natural gas prices continues.
