In order to avoid what the EU claims is discrimination against its producers by the U.S. Inflation Reduction Act, officials from the European Union and the United States hope to reach an agreement that would grant EU businesses, including those that make electric cars, the same status as American ones on the American market.

The EU claims that while it permits government tax cuts or subsidies for the purchase of American electric vehicles like those produced by Tesla (TSLA.O), the US conditions such support on the car, or components of it, being created in the US.

Valdis Dombrovskis, the vice president of the European Commission in charge of trade, will discuss the matter with Katherine Tai, the U.S. trade representative, Gina Raimondo, the secretary of commerce, and Janet Yellen, the secretary of the treasury, on Thursday and Friday. According to Dombrovskis, the Tesla model Y was the most popular vehicle in Germany last month.

Without the non-discriminatory EU subsidy, 'it would not have been conceivable, but EU electric cars do not receive a similar subsidy in the U.S., which is discrimination that we want to rectify,' said Dombrovskis.

When asked if the problem could be solved, U.S. Trade Representative Katherine Tai told the media that she believed the EU and the U.S. would come to an agreement.

After speaking with Dombrovskis, she declared, 'I have great confidence we will work through this based on the strength of the EU-U.S. partnership.'