Trump's legislation has ended the $7,500 tax credits for electric vehicle buyers, significantly affecting the US EV market. Analysts warn that this decision may advantage Chinese automakers, as they already lead in EV exports. As American EV sales decline without the tax incentive, US manufacturers are projected to face financial losses, risking American jobs. In response, China is restricting exports of EV battery technology, complicating supply chains globally and potentially allowing China to dominate the EV market further.
Although Donald Trump presents himself as a fierce adversary of China, some of his policy moves appear to be a significant boon for the People's Republic.
After being signed into law on July 4, it turns out that the massive piece of legislation is set to completely upend the American EV market.
When EV tax credits do expire - which will come three months earlier than originally planned, thanks to the US Senate - the entire [EV] supply chain could be ceded to China.
Chinese lawmakers aren't waiting to set up the killing blow. Instead, they're taking a page out of Trump's tariff playbook by moving to heavily restrict US access to electric vehicle batteries.
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