trade war

The race to create the world's most popular vehicles is underway, and the USA is on the verge of losing its confident lead. For the last few years Tesla has dominated competitors from Europe and Asia in individual vehicle sales despite America's slower approach to the mass adoption of electric vehicles.  According to the International Energy Agency, over 1.7 million EVs were sold in America in 2024. That's up from a mere 300,000 electric vehicle sales in 2020. It's no secret that EVs are becoming more popular in America, but what are the financial implications of a foreign automaker becoming the undisputed sales and product leader in the electric vehicle space?

Millions of electric vehicles could be sold in America in the years to come. If those vehicles are from foreign nations, consumers could pay hefty prices due to import tariffs. There are billions of dollars on the line in the race to create the most popular electric vehicles internationally. The victorious country will win millions of vehicle sales which translates to tax revenue, jobs and reinvestment in dominating brands.

Donald Trump's 'Liberation Day' tariff policy has prompted swift retaliatory tariffs from China. White House press secretary Karoline Leavitt announced 104% tariffs on China on April 8 during a briefing. Where does this leave consumers? Economists and automotive executives predict that Trump's tariffs will make manufacturing significantly more expensive and difficult. The increased costs could lead to higher prices for consumers. On the sales side, retaliatory tariffs will increase the prices of American-made electric vehicles like the popular Tesla Model Y and Tesla Model 3 internationally. This will cause American EVs to be less attractive in the eyes of foreign consumers and more affordable nationally produced models to be more appealing. Who would have thought that Donald Trump would be the one to stop Tesla's amazing international sales run in its tracks?