Energy Intel: “Tariffs Introduce Another Wild Card to US EV Uptake”
RFF research on the new auto tariffs is featured heavily in this story, which talks about the tariffs’ potential impacts.
The volume of US EV sales could decline by roughly 2 percent to 3 percent in the short term due to higher sticker prices resulting from tariffs, according to research from Washington think tank Resources for the Future (RFF). The study examined the short-term implications of the 25 percent tariffs on autos and auto parts announced by Trump last month and does not factor in any additional levies. Canada and Mexico are exempt from Trump's auto tariffs.
EVs that are commonly imported into the United States from places like Eastern Europe and East Asia would face the steepest hikes...
In the longer term, tariffs could create a “strong incentive” for EV supply chains to relocate more production to the United States, but only if investors think the levies will remain in place, Joshua Linn, a co-author of the RFF report, told Energy Intelligence.
“In building a new battery or auto production facility, there’s a lot of money you’re going to sink into that,” he said. “You’re only making that investment if you’re pretty sure tariffs are going to make it over the long haul. I’m fairly skeptical investors would see it that way.”
