Tariff Turmoil: The Struggle of US Electric Vehicle Manufacturing

Former President Donald Trump's tariffs have increased barriers for the US electric vehicle (EV) industry, impacting prices and stifling growth. Despite efforts to boost domestic EV manufacturing, tariffs have made the transition more expensive for automakers and consumers alike, hampering progress toward increased EV adoption.

In an aggressive move that has shaken the global economy, former President Donald Trump's tariffs have dramatically impacted the auto industry, with electric vehicle (EV) manufacturing in the US bearing the brunt.

EV sales in the US, constituting about 8% of new cars in 2024, have been buoyed by tax credits introduced during the Biden administration. However, these sales are at risk as tariffs add costs to an already volatile EV market, experts like Vanessa Miller of law firm Foley & Lardner warn.

The tariffs compound challenges for automakers striving to comply with Biden-era requirements to source EV components domestically or from trade allies. As prices escalate, automakers are forced to reassess their investment strategies, and the US auto industry faces a growing challenge to maintain progress in EV manufacturing.

(With inputs from agencies.)