Impact of Cancelling the U.S. Electric Vehicle Tax Credit

U.S. Energy Secretary Jennifer Granholm argues that cancelling the electric vehicle tax credit will harm U.S. competitiveness in the EV market, especially against China. The planned repeal is part of broader tax-reform by President-elect Donald Trump’s team. This move could potentially hinder electric vehicle adoption in the U.S.

U.S. Energy Secretary Jennifer Granholm warned that ending the electric vehicle tax credit could undermine the nation's competitiveness in the electric vehicle market. Speaking at the COP29 climate conference in Baku, Granholm emphasized the risk of losing ground to global competitors, particularly China.

This statement comes in response to reports of President-elect Donald Trump's transition team planning to abolish the $7,500 tax credit as part of sweeping tax reforms. Granholm stressed the importance of these credits in supporting the domestic electric vehicle industry.

The removal of the credit could stifle America's efforts in promoting electric vehicle use, potentially handing market leadership to Chinese manufacturers. Granholm's comments highlight the strategic implications of this proposed policy change on the global stage.

(With inputs from agencies.)