The US electric vehicle market has experienced a policy "sudden brake". In July 2025, the Trump administration abolished the federal tax credit of up to $7500 per vehicle, which was once seen as a core pillar of Biden's Inflation Reduction Act, and abruptly exited the historical stage.

Some investors predict that this move will slow down the pace of electrification transformation for traditional American car companies, and the growth curve of electric vehicle penetration rate in the United States will significantly slow down. However, Trump ultimately failed to stop the wave of electrification, as American consumers became more concerned about electric vehicles as global oil prices soared. Some dealers have stated that during the rapid rise in oil prices, there has been a temporary increase in the demand for in store consultations and test drives of electric vehicles in the United States. Many consumers who previously held a wait-and-see attitude towards electric vehicles have also begun to turn their attention to them. The plan of the United States to slow down the development of electric vehicles is like a carefully constructed house of cards that collapses instantly under the wind of oil prices. After all, Trump can cancel a policy, but he cannot withstand fluctuations in oil prices, let alone the global shift towards electrification of automobiles. At a time when the United States was caught in a contrast between policies and demand, Chinese electric vehicles were already ready to enter the international market with a breakthrough momentum.

What the United States is giving up is not just subsidies, but the global discourse power of electric vehicles

Yes, the biggest beneficiary of the cancellation of tax credits in the United States is the Chinese automotive industry. Many people may have doubts because in the past, the US automotive market was almost closed to Chinese companies and they couldn't even enter. According to this logic, even if the demand for electric vehicles in the US skyrocketed, consumers couldn't choose Chinese cars. That being said, the significance of this matter is not as simple as Chinese car companies selling a few cars in the US market, but rather that the US is giving up its right to set standards for electric vehicles. We can review the situation in the era of fuel vehicles. In the past, fuel vehicles were the only ones, and core technologies such as engines, transmissions, and chassis were controlled by companies in Europe, America, Japan, and South Korea. It is not an exaggeration to say that they were the makers of fuel vehicle standards. In this context, the development of China's automotive industry can be said to be difficult, and can only introduce joint ventures and slowly develop through the "market for technology" approach.

This is the game rule of the era of fuel vehicles. Whoever masters the standards of fuel vehicles is equivalent to mastering the market and the password of wealth. However, the arrival of electrification and intelligence has completely overturned all of this. The three major technological barriers that traditional car companies at home and abroad are proud of are becoming weaker and weaker. Three electric technology, intelligent cockpit, and assisted driving have become the new core, and consumers' travel needs have also undergone a huge transformation. The Chinese automotive industry clearly understands this, so in the past decade or so, countless car companies have invested countless funds in technology research and development and industrial chain construction, and policies have also been supportive along the way. At this time, the Chinese automotive industry is like a brave explorer, constantly exploring unknown fields, intending to achieve lane changing overtaking on new tracks. After all, whoever can set the technical standards in the field of electric vehicles will become the rule maker of the new era and thus hold the discourse power of the future automotive industry. And what about the United States? Trump actually chose to withdraw from the race, not only canceling the electric vehicle tax credit, but also relaxing the economic standards for fuel vehicles produced by American car companies. Data shows that in January 2026, there were only 59802 newly registered electric vehicles in the United States, a year-on-year decrease of 41%. Consumers are placing more demand on gasoline vehicles. At this point, Trump's actions can also be understood, as they not only protect his traditional fuel vehicle industry, but also enable these industries to provide more employment opportunities for Americans. So, from Trump's perspective, it seems correct, but unfortunately, it happened to be at the stage of global automotive industry transformation. It's like when other countries are competing for the right to set electric vehicle standards in a chaotic market, the United States is actively giving up the table, which is equivalent to losing the competitive advantage in the global electric vehicle race. The withdrawal of the United States objectively gives up the track for China to compete for the right to set electric vehicle standards, just like providing China with an excellent starting opportunity.

Global demand for electric vehicles continues to decline, China welcomes opportunity window

Although the United States is reviving the "second spring" of gasoline cars, many Americans still insist on buying electric vehicles. With the rise in oil prices, some dealers have stated that the number of electric vehicles entering stores and the demand for test drives are increasing. Coincidentally, the European continent has not been spared from this oil price storm. According to media reports, the Chinese brand electric vehicle exhibition hall in the center of Berlin, Germany, has recently attracted more visitors and significantly shortened the transaction cycle. At the same time, the penetration rate of electric vehicles in emerging markets such as Southeast Asia, the Middle East, and Latin America is also increasing. This means that although the United States has withdrawn from the competition, global consumer demand for electric vehicles has not been affected, and the transition to electrification is an inevitable trend. Although Chinese electric vehicles cannot be sold to the United States in the short term, they can be sold to other parts of the world. In 2025, China's automobile exports to the world will reach a milestone breakthrough, with an annual export volume of 7.098 million vehicles, a year-on-year increase of 21.1%, and a leapfrog growth compared to 5.859 million vehicles in 2024 and 4.91 million vehicles in 2023.

Especially for new energy vehicles, 2.615 million units were exported in 2025, a year-on-year increase of 103.7%, accounting for 36.8% of the overall export volume.

That is to say, for every three cars exported by China, one is a new energy vehicle, which fully reflects the competitiveness of China's new energy vehicles in the international market. Taking Europe as an example, as early as November last year, BYD SEAL U (BYD Song PLUS) became the champion of plug-in hybrid sales in the German car market in November, indicating that BYD has entered a new stage in the European market.

The same goes for the Thai market. At the just passed 47th Bangkok International Auto Show, BYD and the Tengshi brand won a total of 18057 orders during the show, becoming the sales champions of the show.

You should know that Thailand has always been the backyard of Japanese fuel vehicles, and the success of Chinese brands also indicates that Chinese car companies' new energy vehicles are being recognized by more and more people. In addition to BYD, there are also Chinese companies such as Changan Automobile, Great Wall Motors, Xiaopeng Motors, Leapmotor, and NIO that are expanding their overseas market layout. The discourse power of the global automotive industry has already unconsciously shifted from the overseas automotive industry to the Chinese automotive industry. More importantly, once this discourse power is established, it will be difficult for newcomers to catch up. For example, in the long process of deep cultivation, China's automobile industry has established advantages that are difficult to replicate. In the field of batteries, there are battery giants such as CATL and BYD, and in the field of assisted driving, there are giants such as Momenta and Huawei. In addition, countless enterprises have deeply cultivated in the industry chain, ultimately leading to China having the most complete and mature new energy vehicle industry chain, achieving full coverage from electrification to intelligence. When the United States one day reacts and wants to regain its say in electric vehicles, it may find that many countries' electric vehicles are already made in China, and many overseas brands of electric vehicles have adopted Chinese suppliers, even using Chinese car companies' platforms to develop new cars. By then, China will no longer be just an exporter of new energy vehicles, but a de facto standard setter in the global electric vehicle industry.

epilogue

Looking back, Trump's cancellation of the electric vehicle tax credit was originally intended to save on fiscal spending, undermine opponents, and serve traditional energy interests. But he may not have expected that this cut would actually give the Chinese automotive industry an opportunity. Perhaps some people may say that things like discourse power and standard definition power are not so easy to snatch away? Such is the case. But don't forget, these things can never be determined by just a slogan or a document, but by the thickness of the industrial chain, the breadth of the market, and the product strength of the car models accumulated bit by bit. And these things happen to be present in the Chinese automotive industry, but unfortunately, it lacks the powerful competitor of the American automotive industry. From this, it can be seen that Trump's cancellation of subsidies, in the short term, has put a brake on the US electric vehicle industry, but in the long term, it has given China a runway to become a standard setter. By the time the United States recovers, Chinese electric vehicles may have become a new symbol of the global automotive industry.