January 22, 2024
The National News Desk recently published an article featuring Justin Ren, Associate Professor of Operations and Technology Management, discussing the challenges facing the U.S. auto industry’s shift to electric vehicles (EVs) as President Trump seeks to unwind policies supporting EV production, including tax credits and subsidies.
The Trump administration has signed executive orders to reverse Biden-era climate policies, focusing on traditional gasoline vehicles. While federal funding for EV development can’t be fully eliminated, some programs may be cut. The auto industry, which has invested heavily in EVs, is struggling with high production costs, though sales have grown thanks to tax incentives. Removing subsidies could raise prices and reduce consumer demand.
“If you take away some subsidies, then the interest will be less because it makes things more expensive. But if you look at other countries ahead of us (in EV sales) the snowball has been formed, and the consumers are just buying EVs. Because of early subsidies, it really created a good ecosystem,” Ren adds.
These changes, including tariffs and policy shifts, could have significant long-term impacts on the EV market and the broader auto industry.