Trump’s EV tax credit cuts are fueling a U.S. battery surplus that could lead to factory cancellations, ‘a poison pill for U.S. manufacturing hopes’

President Donald Trump holds up a sheet of paper with his signature on it. (Credit: Samuel Corum—Getty Images)

• Since President Donald Trump took away $7,500 tax credits for EVs, demand for the vehicles has slumped, contributing to a widespread battery surplus. The shift has led to a divestment in battery factory plans, a hit to Trump’s goal of bolstering U.S. manufacturing. Meanwhile, China continues to lead the world in global battery production.

President Donald Trump’s crackdown on electric vehicle tax credits has contributed to a growing battery surplus that may hinder U.S. manufacturing, experts warn.