How Trump's ‘Big, Beautiful Bill' could help China win EV race

Yahoo

12 hours ago

The "One Big, Beautiful, Bill" was signed into law on July 4, after passing the Senate and House. The reconciliation bill features hundreds of provisions and will affect Americans from all socioeconomic backgrounds. Some of the bill's provisions will completely change the way automotive companies produce electric vehicles and the way American consumers purchase EVs.
The Senate altered the original reconciliation bill, accelerating the termination of used and new electric vehicle buying incentives from December 2025 to September 2025. Experts say the elimination of the federal electric vehicle tax credit could be the catalyst to complete Chinese domination in the global EV space. It could cede the entire electric vehicle supply chain to China, according to a column on ForeignPolicy.com, an authority on international policy.
Electric vehicles are much more ubiquitous today than they were a decade ago. What was once thought to be an impractical niche powertrain has taken over the globe. Despite the U.S. lagging behind competitors in EV adoption, nearly 300,000 electric vehicles were sold in the first quarter of 2025 — an 11.4% increase from last year, according to Cox Automotive.
American EV sales may be increasing year-over-year, but China sold one million EVs in May, according to electric vehicle research company Rho Motion. China has sold 4.4 million EVs in 2025 through May, eclipsing major competitors in electric vehicle sales.
China is selling more EVs than America, but its EV domination doesn't stop at its own country. The People's Republic of China holds 62% of the global EV market, according to Rho Motion. In short, this means car buyers across the globe are choosing Chinese-made electric vehicles over American-made electric vehicles from companies like Tesla. Chinese EVs are popular in countries like Brazil, Spain, Norway, and the United Kingdom.
President Donald Trump's stance on electric vehicles has been clear as an advocate for oil drilling and a climate change skeptic. So, imposing provisions that impede the progress of the electrification of American autos is unsurprising. That said, the decision to eliminate the EV tax credit along with electric vehicle production incentives will make American EVs more expensive for consumers and production less appealing for automakers.
Anti-electric vehicle provisions in the bill could lead to major job losses for Americans. Companies will lose "billions of dollars in investments" according to EV non-profit Plug-In America. If American automakers are discouraged from producing competitive electric vehicles due to dwindling profits and a lack of incentives, China has a clear path to completely steam roll the U.S. in the global EV arena.
Despite the administration's sudden about-face on the electric vehicle industry, there are several excellent electric vehicles for sale in America. Some of these are even American-made or mostly assembled in America. The Tesla Model Y small electric SUV is a major sales leader. Tesla sold a whopping 64,051 Model Y EVs in the first quarter of 2025, according to Kelley Blue Book.
There are plenty of competitive American electric vehicles on the market that offer sufficient value for the money like the Ford Mustang Mach-E, Chevrolet Equinox EV, Tesla Model 3, and more. American electric vehicles have made huge strides in the last few years, but it's clear that the elimination of the federal EV tax credit will have an impact on American EVs for years to come.
This article originally appeared on USA TODAY: How Trump's 'Big, Beautiful Bill' could help China dominate EV market