The bloc's chief, Von Der Leyen says the EU must address distortions created by a $430bn US plan to incentivize climate-friendly technologies,
Some EU members have criticized the US Inflation Reduction Act, raising fears of a trade war.
European Commission President Ursula von der Leyen says the EU should adjust its own rule while adding that competition is good but the competition must respect a level playing field.
US President Joe Biden has called it the most aggressive action his country has taken to tackle the climate crisis.
Ms von der Leyen says the EU had to work with the US to address some of the most concerning aspects of the law.