BENGALURU, India — The Biden administration hopes to succeed in restricted free commerce agreements with international locations in Europe and Asia that will not require congressional approval because it seems to ease allies’ issues about laws that President Biden signed into regulation final yr, Treasury Secretary Janet L. Yellen mentioned on Friday.

The regulation, generally known as the Inflation Discount Act, has rankled trans-Atlantic ties in latest months, fueling frustration in Europe and in Japan that the administration’s insurance policies are protectionist actions that may result in a worldwide subsidy warfare.

High European officers expressed their complaints on to Ms. Yellen and different administration officers throughout conferences in Washington this month, making clear that the matter was straining relations because the West tries to maneuver in lock step to punish Russia for its warfare in Ukraine.

The stress has centered on $50 billion in tax credit that have been created within the regulation to entice People to purchase electrical autos which might be assembled in North America. For electrical autos to be eligible for the complete tax credit score, a portion of the minerals which might be used to make the batteries that energy them should come from nations which have free commerce agreements with the USA.

Mr. Biden instructed President Emmanuel Macron of France in December that he was open to creating “tweaks” to “glitches” within the local weather regulation that will handle European issues. A attainable answer, Ms. Yellen advised on Friday, might come within the type of new agreements that will enable Europe to satisfy the necessities.

“We’ve additionally mentioned the potential for forming crucial minerals-free commerce agreements that will allow Europe to qualify as a free commerce associate,” Ms. Yellen mentioned on the sidelines of Group of 20 finance ministers conferences in India.

Successful congressional approval for these free commerce agreements can be tough with Republicans in command of the Home and a few Democrats, reminiscent of Senator Joe Manchin III of West Virginia, against European corporations benefiting from American tax credit. Nonetheless, the Inflation Discount Act doesn’t specify how a free commerce settlement is outlined; Ms. Yellen mentioned she thought it might be attainable to plan extra restricted pacts in order that the consent of Congress isn’t required.

“It could be an settlement that will not require the settlement of Congress,” Ms. Yellen mentioned, including that she believed such agreements can be aligned with the intent that Congress had when it handed the regulation. “I believe the phrase ‘free commerce’ was meant to imply dependable buddies and companions with whom we are able to really feel now we have safe provide chains.”

U.S. and European officers have spent a few years on the negotiating desk in latest a long time and tried to succeed in pacts underneath the Obama and Trump administrations. However regardless of the international locations’ deep cultural and historic ties, talks have been repeatedly slowed down by sure thorny points, reminiscent of every authorities’s remedy of its agricultural sector.

Ms. Yellen met on Friday with Bruno Le Maire, France’s finance minister, who has been a vocal critic of the American subsidies. At a information convention after their assembly, Mr. Le Maire mentioned that Europe needed extra transparency from the USA about how the tax credit would work. He additionally made clear that Europe can be ramping up its personal subsidies to help its inexperienced vitality trade.

“The Biden administration has taken very robust steps to construct its inexperienced trade by offering subsidies and tax credit to the American corporations,” Mr. Le Maire mentioned. “In Europe, we’re totally decided to do the identical.”

The Treasury Division is predicted to launch steering subsequent month that may clarify intimately how the crucial mineral and battery part necessities within the regulation will work. Within the meantime, electrical car shoppers have had entry to the complete tax credit score with out sourcing necessities.

The prospect of the Biden administration making commerce offers that will profit different nations might generate backlash in Washington. No Republicans voted for the regulation, and Mr. Manchin, who’s essential in holding collectively the slim Democratic majority within the Senate, has been crucial of the Biden administration’s dealing with of the tax credit. Many lawmakers have additionally repudiated the present and former administrations for negotiating commerce pacts with out oversight or approval from Congress, which has constitutional energy over commerce.

Mr. Manchin mentioned this month that Ms. Yellen was “not following the regulation” and accused the Treasury Division of deciding arbitrarily what sorts of autos might have entry to the tax credit score. In December, he wrote a letter to the Treasury secretary expressing concern that rental automobiles, leased autos and ride-share autos would have the ability to get the complete tax credit score no matter sourcing necessities and known as on her to launch steering that will forestall autos purchased for these makes use of from being eligible for the tax credit score.

However on Friday, Ms. Yellen mentioned that guidelines permitting automobiles from Europe, Japan and South Korea to obtain subsidies if they’re leased had helped alleviate the issues of her worldwide counterparts, and he or she expressed help for that provision. She additionally acknowledged that European international locations have been prone to undertake further subsidies and incentives and mentioned that the USA wouldn’t attempt to stand in the best way.

Explaining that the regulation was meant to be a part of the Biden administration’s strategy to “friendshoring” whereas enhancing the setting, Ms. Yellen made the case that the USA was not making an attempt to hurt its allies.

“We’ve been very clear with Europe that this isn’t a subsidy warfare,” Ms. Yellen mentioned. “We’re not making an attempt to steal jobs. That is our local weather plan.”

Ana Swanson contributed reporting from Washington.