Electric car sales flatline in the U.S. under Trump's administration; surging by 40% globally elsewhere
==================================================================================================
In the first seven months of 2025, global sales of electric vehicles (EVs) have surpassed 10.7 million units, according to a report by Rho Motion. However, the sales of EVs in North America, particularly in the United States, have shown a relatively sluggish growth compared to other regions.
North America: A Mixed Bag
Despite a dip in U.S. EV sales during the second quarter of 2025, there was a 1.5% increase in the first half compared to the same period in 2024. This suggests a relatively stable market amid policy changes. However, the Trump Administration's policies have had a significant impact on the EV landscape in North America.
The Administration reversed several clean energy incentives initiated by the Biden administration, including tax breaks for EVs and grants for battery recycling projects. These changes could reduce demand for EVs but also promote domestic battery manufacturing through tariffs.
A 25% tariff on auto and auto part imports could increase the cost of imported EVs, potentially benefiting domestic EV manufacturers. However, the U.S. EV market is significantly influenced by global trends and technology advancements.
Comparison with the Rest of the World
Globally, EV adoption continues to grow, driven by technological advancements, government incentives in many regions, and increasing consumer demand for sustainable options. Unlike the U.S., many other countries have strengthened their support for EVs through subsidies and mandates. Europe, for example, has set ambitious targets for EV adoption, which could accelerate global sales while the U.S. might lag behind due to policy shifts.
The global EV market is less dependent on U.S. policies, as countries like China, Norway, and the UK have been leading in EV adoption. Thus, while U.S. policies might slow EV sales domestically, global EV sales are likely to continue growing, driven by diverse regional policies and consumer preferences.
Impact of Trump Administration Policies
The Trump Administration's policies are expected to have a mixed impact on EV sales in North America. The elimination of tax credits, such as the $7,500 subsidy per automobile, could lead to a probable decline in US electric vehicle sales. After the elimination, a temporary rebound in US electric vehicle sales is expected before the government stops the tax credits at the end of September.
The main automobile manufacturers have started to eliminate or delay their investments in EVs in favor of an increase in the production of vehicles with combustion engines. This shift is partly due to the elimination of tax credits, which increases the prices of vehicles by approximately $7,500 per unit.
The report published by Rho Motion shows that electric vehicle sales in North America have stagnated during the first seven months of 2025. The new policies of the Trump Administration have led to a shift in the production of vehicles towards those with combustion engines.
Conclusion
The Trump Administration's policies in 2025 are expected to have a mixed impact on EV sales in North America, potentially slowing growth due to reduced incentives and increased costs from tariffs. In contrast, the global EV market is likely to continue its upward trend, driven by supportive policies and technological advancements in other regions.
The article also references a related article titled "Chinese electric vehicle manufacturers pause discounts; seek to slow price war amid tariff pressures". As the world moves towards a more sustainable future, the role of government policies in shaping the EV market cannot be overstated.
- The Trump Administration's reversal of clean energy incentives, such as tax breaks for electric vehicles (EVs) and grants for battery recycling projects, could potentially reduce demand for EVs in North America.
- The elimination of tax credits, like the $7,500 subsidy per automobile, could lead to a probable decline in US electric vehicle sales, followed by a temporary rebound before the government stops the tax credits.
- Many other countries have strengthened their support for EVs through subsidies and mandates, making them less dependent on US policies for their EV market growth.
- The global EV market is driven not only by technological advancements but also by diverse regional policies and consumer preferences, with countries like China, Norway, and the UK leading in EV adoption.
