Trump's Plan to End EV Tax Credit Raises Industry Concerns

Automakers warn of economic and environmental setbacks as President-elect Trump targets the $7,500 EV purchase incentive.

President-elect Donald Trump plans to eliminate the federal $7,500 EV tax credit, pending congressional approval, as part of broader tax reforms.
Automakers, including Kia and Hyundai, argue that removing the credit would undermine significant investments in U.S.-based EV manufacturing and disrupt job creation.
Industry leaders predict a short-term surge in EV purchases as consumers rush to capitalize on the credit before it potentially ends.
Experts suggest the policy change could slow EV adoption in the U.S., though state-level incentives and market-driven affordability may offset some impacts.
Cutting the credit could weaken U.S. automakers' competitiveness against China in the global EV market, while also threatening progress on climate goals.