President Donald Trump’s settlement bill gives China the racial advantage of electric vehicles, according to EV and policy experts.
Senator Dems Blast Gop for passing “Big Beautiful Bill”
Democrats have sharply criticized GOP Senators for passing President Donald Trump’s “big beautiful bill.”
- Big Beautifulville will eliminate federal EV tax credits in September.
- Experts say the current administration’s stance on EVs could hamper progress and cost automakers billions.
- China already controls global electric vehicle sales, according to data. China’s EVs could become even more popular in the future.
“One Big and Beautiful Bill” was signed into law on July 4th after passing the Senate and House of Representatives. The settlement bill features hundreds of provisions that affect Americans from all socioeconomic backgrounds. Some of the bill’s provisions completely change the way auto companies produce electric vehicles and the way American consumers buy EVs.
The Senate changed the original settlement bill and accelerated the end of the incentives for used and new electric vehicles from December 2025 to September 2025. Experts say the elimination of the federal electric vehicle tax credit could be a catalyst for completing China’s domination in the global EV space. According to a column on AfticalPolicy.com, the power on international policy, the entire electric vehicle supply chain can be handed over to China.
China has won the electric car race
Electric cars are far more ubiquitous than they were a decade ago. What once considered an unrealistic niche powertrain has taken over the world. According to Cox Automotive, the US lags behind its EV adoption competitors, but around 300,000 electric vehicles were sold in the first quarter of 2025.
U.S. EV sales may be up year-on-year, but they sold 1 million EVs in May, according to electric vehicle research firm Rho Motion. China sold 4.4 million EVs from 2025 to May, overturning major competitors with electric vehicle sales.
China sells more EVs than the US, but their EV control never stops in their own country. According to Rho Motion, the People’s Republic of China holds 62% of the global EV market. In short, this means that car buyers around the world choose Chinese-made electric vehicles over American-made electric vehicles from companies like Tesla. China’s EVs are popular in countries such as Brazil, Spain, Norway and the UK.
Why “one, big and beautiful bill” allows China to claim more EV market share
President Donald Trump’s stance on electric vehicles was evident as an advocate for oil drilling and climate change skeptics. Therefore, it is not surprising to impose regulations that would hinder the advances in electrification of American cars. That said, the decision to eliminate EV tax credits along with the incentives for electric vehicles makes American EVs more expensive for consumers and production is less attractive to automakers.
The anti-electric vehicle provision in the bill could lead to significant unemployment for Americans. According to America, a non-profit plugin for EVs, companies will lose “billions of dollars in investments.” If American automakers are prevented from producing competitive electric vehicles due to lower profits and lack of incentives, China has a clear path to completely steaming the US in their global EV arena.
Is American electric cars worth buying?
Despite the sudden side of the electric vehicle industry, there are several excellent electric vehicles on sale in the US. Some of these are made in the United States or mostly assembled in the United States. The Tesla Model y Small Electric SUV is a leading sales leader. According to the Kelley Blue Book, Tesla sold a whopping 64,051 Model Y EVs in the first quarter of 2025.
The market has competitive American electric vehicles that offer plenty of value for money, such as the Ford Mustang Mach-E, Chevrolet Equinox EV, and Tesla Model 3. While American electric vehicles have made significant progress in recent years, it is clear that the elimination of the federal EV tax credit will affect American EVs in the coming years.
