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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, triggering a sharp decline in U.S. electric-vehicle sales and forcing automakers to halt production at major battery plants, including Ultium Cells in Lordstown.
  • Atlas Public Policy data show nearly $20 billion in projects were canceled last year as the industry contracted sharply following a massive investment wave between 2019 and 2024 centered on electric vehicles.
  • Stellantis head of American brands Tim Kuniskis said new gasoline-powered "muscle trucks" would have been impossible "without the government's policy changes," as Ford switched its Tennessee assembly plant from electric pickups to gas-powered models.
  • Federal data show U.S. auto-manufacturing jobs shrank 1.3% to about 963,000 since January 2025, while 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 encourage broad manufacturing investments across all powertrains.
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Reuters broke the news in London, United Kingdom on Tuesday, September 15, 2026.
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