US President Donald Trump’s escalating trade war has sent shockwaves through the global economy, including the auto sector, where plans to electrify in the US are under threat. The impact on electric vehicles (EVs) is significant, with consumers facing higher prices and uncertain future prospects.
As of 2024, EVs accounted for around 8% of new car sales in the US, with Tesla holding a majority share of the market at 48%. However, brands like Ford, Chevrolet, and Hyundai have been expanding their electric offerings, making them more competitive. Despite the growth, EVs remain more expensive than their gasoline-powered equivalents.
The introduction of tariffs adds to the costs of an already volatile transition. Automakers must now import critical minerals from China, increasing expenses. The Biden-era tax credits that spurred interest in EVs are set to expire, and Trump’s administration is reevaluating emissions standards.
The impact on EV pricing and inventory will be significant. Higher prices may push buyers towards the used car market, but finding affordable options there might be challenging. Automakers will need to prioritize their investments and manufacturing, focusing on profitable models.
Industry experts warn that making fewer EVs won’t bring costs down further anytime soon. The American auto industry’s growth is crucial for creating jobs and new economic opportunities, particularly in the EV sector.
Source: https://apnews.com/article/trump-tariffs-electric-vehicles-automakers-a106cce5b6acbf5d14ad1e583e301b50