Detroit – President Donald Trump’s Tariff Blitz has sent shock waves Throughout all aspects of the global economy, including the automotive sector, where billionaire plans to electrify in the United States are especially at risk.
This is what consumers should know about the impact of rates on electric vehicles.
EVS It represented about 8% of new car sales in the US. In 2024, according to Motorintelligence.com.
Some of these sales can be attributed to the extended tax credits for EV purchases, a Biden era policy that stimulated the interest of the car buyer.
Tesla had the majority of US market share in 2024, at 48%. But that participation has decreased in recent years, such as brands such as Ford (7.5%), Chevrolet (5.2%) and Hyundai (4.7%) began to offer a broader variety of electric models at better prices, according to Kelley Blue Book.
Electric vehicles It is still more expensive than its equivalents with gasoline. The new gas vehicles were sold for $ 48,039 on average last month, according to Kelly Blue’s book data, while the EVs were sold for $ 55,273 on average.
The tariffs are added to the costs of an EV transition that was already volatile and uncertain, said Vanessa Miller, a members of litigation focused on car manufacturing in the fold of lawyers Foley AND Lardner
Biden fiscal credits essentially required that automobile manufacturers obtain more and more about their US ev. UU. Or allied trade in the coming years for their vehicles to qualify. Automobile manufacturers have worked to build an EV supply chain throughout the country and A significant investment has gone Towards these efforts.
EVs assembled here include Tesla models, Ford F-150 Lightning and more. Tesla could actually be less vulnerable given how much of its vehicles come from the US.
Although the The industry is growingTariffs mean that costs for car manufacturers and their buyers will remain high and could rise, as well as increase the prices of many parts of electric vehicles that still come from China and other places. From the critical minerals used in the production of batteries to the vehicles themselves, China returns to the United States industry.
Automobile manufacturers were already going back ambitious electrification plans In the midst of reducing federal support and are tied for cash on what is The least lucrative side of your business.
The highest prices can lead to car buyers to the used car marketBut it is not likely that Find a lot of breath there.
If consumers do not buy so many vehicles, car manufacturers will have to prioritize their investments and manufacturing. That means the cars that buyers want and that are more profitable. Automobile manufacturers still lose thousands of dollars in each EVs that win and sell, but make money with large and popular trucks and SUV that achieves gasoline.
These manufacturers “have put a certain amount of investment in electric vehicles, and it would probably be even more overthrown to get away from them than to find the new level at which it makes sense to maintain their production,” said Karl Brauer, executive analyst at the automatic research site iseecars.com. That level “will surely be lower than it was,” he added.
Making less EV will not help reduce its cost in the short term.
Albert Gore, executive director of the Zero Emissions Transport Association, said in a statement that the EV and the battery sector are working to ensure that the US automotive industry grows and that its group works with the administration in productive commercial policy.
“Tariffs on our long -standing commercial partners, many of whom have committed billions in direct investment in US factories, presents uncertainty and risk in an industry that is creating jobs and providing new economic opportunities to communities throughout the country,” Gore said.
Trump has already taken an ax to the federal policy of EV. He campaigned in a vote to end what he called “EV mandate” of former President Joe Biden.
Biden EV policies did not require car manufacturers to sell electric vehicles or consumers to buy them, but encouraged manufacturers to increase their electric offers in the coming years. Trump ended Biden’s goal for 50% of all new vehicles sold in the US. To be electric by 2035 in his first days in office.
Also under Biden, the Environmental Protection Agency and the Rules of the National Road Traffic Administration Administration on Vehicle greenhouse gas emissions and Fuel economy They became increasingly hard, but car manufacturers sold an increasing number of electric vehicles along with more efficient fuel vehicles. Trump administrators are already reassessing emission standards.
It is also likely to seek to repeal tax credits.
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Alexa St. John is a climate reporter of Associated Press. Follow her in X: @alexa_stjohn. Communicate with her at ast.john@ap.org.
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