The WTO ruled the U.S. broke trade rules with clean energy tax credits, ordering their removal by Oct. 1, 2026.

The World Trade Organization ruled that the U.S. violated trade rules by offering tax credits under the Inflation Reduction Act that favored domestic clean energy production, benefiting American companies over foreign rivals. China filed the complaint in 2024, arguing the subsidies distorted global markets. The WTO panel recommended the U.S. eliminate the domestic bonus credits by October 1, 2026, but did not rule on electric vehicle credits, which were already ended in July 2025. The U.S. criticized the decision, saying the WTO’s rules are outdated and unable to address structural trade issues. Both sides can appeal, but an appeal is unlikely as the WTO’s Appellate Body remains inactive due to a U.S. blockade since 2019.