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Reuters: How Trump’s war on EVs derailed America’s auto-factory revival
Auto executives say the lost $7,500 tax credit and weaker emissions rules cut EV demand, while canceled projects promised about 27,000 jobs.
President Donald Trump and congressional Republicans ended the $7,500 federal EV tax credit, sending U.S. electric-vehicle sales tumbling and forcing automakers like Ultium Cells in Lordstown to halt production.
Following a massive investment wave between 2019 and 2024, the industry faces severe contraction as Atlas Public Policy data show nearly $20 billion in projects were canceled last year, with canceled projects promising about 27,000 jobs.
Stellantis head of American brands Tim Kuniskis said new gasoline-powered "muscle trucks" would have been "impossible without the governments policy changes," while Ford switched its Tennessee assembly plant to gas-powered pickups.
Since January 2025, U.S. auto-manufacturing jobs shrank 1.3% to about 963,000, federal data show; a September 2025 raid on a Georgia battery factory co-owned by Hyundai and LG Energy Solution resulted in 475 arrests.
White House spokesman Kush Desai faulted the previous administration for fueling "artificial demand" with subsidies, asserting the current administration is "slashing red tape" to secure trillions in new manufacturing investments.