The world is moving towards the electrification of vehicles. In 2025, EVs grew by 33% in Europe and 20% worldwide. They represented 50% of new car sales in China. It’s a very different story in the United States, where EV sales actually fell by 4% year-over-year.
The reason is that the Trump administration is anti-EV and very much pro fossil fuels. The repeal of the federal consumer tax credit was a big factor in the slowdown of EV sales. But of more lasting impact is the repeal of the Environmental Protection Agency’s scientific finding on the dangers of greenhouse gases. As a result, all regulations designed to reduce emissions and pollution are going away.
As a result, the American auto industry will reap financial benefits by pivoting away from EVs. The so-called Big 3 automakers have all cancelled various electric vehicle programs and have written off a collective $52 billion in investments they have made in electric vehicles. Instead, they will concentrate on the near-term profits that they and oil companies will reap.
Going forward, Americans will have fewer choices about what they can drive. Stiff tariffs will prevent foreign carmakers – especially those in China that are taking a growing share of the global market – from selling cars in the US. The side effect will be air pollution commensurate with gasoline use –carbon dioxide, particulate matter, and smog.
The director of the EPA’s office of transportation and air quality over three earlier administrations sadly observes that the United States will become an island of obsolete technologies.
