Consumer Corner
America is falling behind in the global EV race – that’s going to cost the US auto industry
Hengrui Liu, Tufts University and Kelly Sims Gallagher, Tufts University
At the 2026 Detroit Auto Show, the spotlight quietly shifted. Electric vehicles, once framed as the inevitable future of the industry, were no longer the centerpiece. Instead, automakers emphasized hybrids, updated gasoline models and incremental efficiency improvements.
The show, held in January, reflected an industry recalibration happening in real time: Ford and General Motors had recently announced US$19.5 billion and $6 billion in EV-related write-downs, respectively, reflecting the losses they expect as they unwind or delay parts of their electric vehicle plans.
The message from Detroit was unmistakable: The United States is pulling back from a transition that much of the world is accelerating. https://www.youtube.com/embed/VPMEgNAY60o?wmode=transparent&start=0 Highlights from the Detroit Auto Show, starting with V-8 trucks, by the Detroit Free Press’ auto writer.
That retreat carries consequences far beyond showroom floors.
In China, Europe and a growing number of emerging markets, including Vietnam and Indonesia, electric vehicles now make up a higher share of new passenger vehicle sales than in the United States.
That means the U.S. pullback on EV production is not simply a climate problem – gasoline-powered vehicles are a major contributor to climate change – it is also an industrial competitiveness problem, with direct implications for the future of U.S. automakers, suppliers and autoworkers. Slower EV production and slower adoption in the U.S. can keep prices higher, delay improvements in batteries and software, and increase the risk that the next generation of automotive value creation will happen elsewhere.
Where EVs are taking over
In 2025, global EV registrations rose 20% to 20.7 million. Analysts with Benchmark Mineral Intelligence reported that China reached 12.9 million EV registrations, up 17% from the previous year; Europe recorded 4.3 million, up 33%; and the rest of the world added 1.7 million, up 48%.
By contrast, U.S. EV sales growth was essentially flat in 2025, at about 1%. U.S. automaker Tesla experienced declines in both scale and profitability – its vehicle deliveries fell 9% compared to 2024, the company’s net profit was down 46%, and CEO Elon Musk said it would put more of its focus on artificial intelligence and robotics.
Market share tells a similar story and also challenges the assumption that vehicle electrification would take time to expand from wealthy countries to emerging markets.
In 39 countries, EVs now exceed 10% of new car sales, including in Vietnam, Thailand and Indonesia, which reached 38%, 21% and 15%, respectively, in 2025, energy analysts at Ember report.
In the U.S., EVs accounted for less than 10% of new vehicle sales, by Ember’s estimates.
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U.S. President Donald Trump came back into office in 2025 promising to end policies that supported EV production and sales and boost fossil fuels. But while the U.S. was curtailing federal consumer incentives, governments elsewhere largely continued a transition to electric vehicles.
Europe softened its goal for all vehicles to have zero emissions by 2035 at the urging of automakers, but its new target is still a 90% cut in automobiles’ carbon dioxide emissions by 2035.
Germany launched a program offering subsidies worth 1,500 to 6,000 euros per electric vehicle, aimed at small- and medium-income households.
In developing economies, EV policy has largely been sustained through industrial policies. In Brazil, the MOVER program offers tax credits explicitly linked to domestic EV production, research and development, and efficiency targets. South Africa is introducing a 150% investment allowance for EV and battery manufacturing, giving them a tax break starting in March 2026. Thailand has implemented subsidies and reduced excise tax tied to mandatory local production and export commitments.
In China, the EV industry has entered a phase of regulatory maturity. After a decade of subsidies and state-led investment that helped domestic firms undercut global competitors, the government’s focus is no longer on explosive growth at home.
With their domestic market saturated and competition fierce, Chinese automakers are pushing aggressively into global markets. Beijing has reinforced this shift by ending its full tax exemption for EV purchases and replacing it with a tapered 5% tax on EV buyers.
Consequences for US automakers
EV manufacturing is governed by steep learning curves and scale economies, meaning the more vehicles a company builds, the better it gets at making them faster and cheaper. Low domestic production and sales can mean higher costs for parts and weaker bargaining power for automakers in global supply chains.
The competitive landscape is already changing. In 2025, China exported 2.65 million EVs, doubling its 2024 exports, according to the China Association of Automobile Manufacturers. And BYD surpassed Tesla as the world’s largest EV maker in 2025.
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The U.S. risks becoming a follower in the industry it once defined.
Some people argue that American consumers simply prefer trucks and hybrids. Others point to Chinese subsidies and overcapacity as distortions that justify U.S. industry caution. These concerns deserve consideration, but they do not outweigh the fundamental fact that, globally, the EV share of auto sales continues to rise.
What can the US do?
For U.S. automakers and workers to compete in this market, the government, in our view, will have to stop treating EVs as an ideological matter and start governing it like an industrial transition.
That starts with restoring regulatory credibility, something that seems unlikely right now as the Trump administration moves to roll back vehicle emissions standards. Performance standards are the quiet engine of industrial investment. When standards are predictable and enforced, manufacturers can plan, suppliers can invest in new businesses, and workers can train for reliable demand.
Governments at state and local levels and industry can also take important steps.
Focus on affordability and equity: The federal clean-vehicle tax credit that effectively gave EV buyers a discount expired in September 2025. An alternative is targeted, point-of-sale support for lower- and middle-income buyers. By moving away from blanket credits in favor of targeted incentives – a model already used in California and Pennsylvania – governments can ensure public funds are directed toward people who are currently priced out of the EV market. Additionally, interest-rate buydowns that allow buyers to reduce their loan payments and “green loan” programs can help, typically funded through state and local governments, utility companies or federal grants.
Keep building out the charging network: A federal judge ruled on Jan. 23, 2026, that the Trump administration violated the law when it suspended a $5 billion program for expanding the nation’s EV charger network. That expansion effort can be improved by shifting the focus from the number of ports installed to the number of working chargers, as California did in 2025. Enforcing reliability and clearing bottlenecks, such as electricity connections and payment systems, could help boost the number of functioning sites.
Use fleet procurement as a stabilizer for U.S. sales: When states, cities and companies provide a predictable volume of vehicle purchases, that helps manufacturers plan future investments. For example, Amazon’s 2019 order of 100,000 Rivian electric delivery vehicles to be delivered over the following decade gave the startup automaker the boost it needed.
Treat workforce transition as core infrastructure: This means giving workers skills they can carry from job to job, helping suppliers retool instead of shutting down, and coordinating training with employers’ needs. Done right, these investments turn economic change into a source of stable jobs and broad public support. Done poorly, they risk a political backlash.
The scene at the Detroit Auto Show should be a warning, not a verdict. The global auto industry is accelerating its EV transition. The question for the United States is whether it will shape that future – and ensure the technologies and jobs of the next automotive era are in the U.S. – or import it.
Hengrui Liu, Postdoctoral Scholar in Economics and Public Policy, The Fletcher School, Tufts University and Kelly Sims Gallagher, Professor of Energy and Environmental Policy, Director of the Climate Policy Lab and Center for International Environment and Resource Policy, The Fletcher School, Tufts University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Consumer Corner
5 Hidden Ways to Save on Home Insurance Costs
Lowering Home Insurance Costs? Many home improvements offer an added bonus of unlocking insurance discounts, but these savings opportunities can easily fly under the radar when you aren’t actively on the lookout for them.
5 Hidden Ways to Save on Home Insurance Costs
(Feature Impact) When you’re planning home improvements, you’re often thinking about improving the comfort, safety, aesthetic or value of your home. Many changes and renovations have the added bonus of unlocking insurance discounts, but these savings opportunities can easily fly under the radar when you aren’t actively on the lookout for them.
“Homeowners tend to think about their insurance when they buy the house or when they have a claim, but a lot can change in between,” said Larry Anderson, director of underwriting operations at Mercury Insurance. “Something as simple as reviewing your policy with your agent once a year can help make sure your coverage still reflects your home today and identify improvements or other factors that may qualify you for additional savings.”
The experts at Mercury Insurance, a multiple-line insurance carrier emphasizing competitive rates and excellent customer service, encourage homeowners to consider these five ways to save on home insurance costs.
Updating Older Parts of the Home
As a home ages, it’s wise to look at what parts and systems may be deteriorating and need upgrades for modernity or safety reasons. Replacing older electrical, plumbing or other major systems can protect your home from emergencies and loss risks. Depending on the state you live in, your specific policy and the improvements you made, it can also qualify your property for an updated-home insurance discount.
Keep records of major improvements – including receipts, work permits and information about when the work was completed – and plan to discuss the upgrades during your next insurance review.
Adding Protective Technology
Beyond replacing the batteries in your smoke detectors, you can outfit your home with a variety of protective devices that make a difference to insurers. Consider options like monitored burglar and fire alarms, smart water sensors and automatic water shutoff systems designed to detect problems before they become major losses. Remember, while security upgrades can make your home less risky to insure, they won’t save you money if your insurer doesn’t know you’ve installed them.
Improving Resilience to Damage
If you live in an area prone to extreme weather or other hazards, resilience upgrades could both safeguard your home and access insurance savings. Depending on your location, qualifying improvements could include a stronger roof, wildfire mitigation measures or flood defense options. Local insurance agents can provide more specific guidance on ways to make your home less vulnerable to damage – or whether you’re eligible for discounts because of work you’ve already completed.
Qualifying for Community Programs
Even if you haven’t personally made renovations to your home, certain changes in your community could help you save on insurance. That could include local wildfire mitigation measures, membership in a qualifying homeowners association or other neighborhood characteristics that affect coverage options, but specific programs vary by location.
Reviewing Insurance Products and Discounts
Whether something significant has changed in your home or community or not, it’s always valuable to review your insurance coverage on a regular basis. For instance, there may be new products or discounts that simply didn’t exist when you originally purchased your policy. Beyond savings considerations alone, ask your agent questions to make sure your coverage still reflects your circumstances and goals.
“Finding savings is always welcome, but the bigger goal of a policy review is making sure your insurance keeps pace with your life and your home,” Anderson said. “A house isn’t static. We improve it, maintain it and protect it in new ways over time. Your insurance should keep up with those changes.”
For more information on homeowner coverage and discount eligibility, visit MercuryInsurance.com.
Questions to Consider During Your Annual Insurance Checkup
An annual insurance review is an opportunity to look for savings and update coverage. Use these questions as a jumping-off point for discussions with your agent:
- What has changed about my home?
- What has changed about my property or community?
- Have my circumstances changed?
- Are discounts available today that weren’t when I purchased my policy?
- Does my coverage still reflect what it would cost to repair or rebuild my home today?
Photos courtesy of Shuttersotck
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Consumer Corner
5 Smart Ways to Prepare Your Home to Weather Storm Season
By readying your home for storm season in advance, you can prevent minor problems from turning into major damage. Consider these five tips to batten down the hatches when the skies are getting dark.
(Feature Impact) Whether your area is prone to thunderstorms, hurricanes, tornadoes or other forms of severe weather, the best time to prepare is before the first raindrop hits. By readying your home for storm season in advance, you can prevent minor problems from turning into major damage.
Consider these five tips to batten down the hatches when the skies are getting dark.
Check Your Roof and Gutters
Your roof has one job – to be a shield against the elements. Don’t wait for a storm to discover you have loose shingles that could fly off in high winds, cracked seals where the roof meets the walls or sagging gutters that aren’t capable of funneling water away from the house. Stay up to date on roof maintenance and clear leaves, twigs and other debris from gutters to prevent clogging.
Trim Trees and Landscaping
Dead trees or weak branches can break and turn into projectiles during storms, potentially causing damage to your house, car or nearby power lines. Next time you have yardwork on the agenda, factor storm preparation into your landscaping plans. Keep trees and bushes trimmed and consider bringing in a professional to assess the health of any trees near your home that could be at risk of toppling.
Strengthen Your Home’s Weak Spots
Windows and doors are some of the most vulnerable places during storms, so pay extra attention to weatherproofing there. Look for any cracks in the glass, check for worn seals or drafty areas and make sure doors close securely and don’t rattle. If you live in an area prone to strong winds or hurricanes, consider upgrading your home with storm shutters for extra peace of mind when debris starts flying.
Turn Your Yard Into a No-Fly Zone
When there’s bad weather in the forecast, you probably aren’t planning to go out and lounge on patio furniture as the skies open up – so pack it up. Secure any items that are too large to bring inside and check around the yard for lightweight items like gardening tools, toys and anything else that could become airborne during strong gusts.
Make a Power Outage Plan
During a storm, nobody wants to fumble around in the dark trying to find batteries for a dead flashlight. Save yourself the trouble by assembling an emergency kit to help your household get by without power if the lines go down. Know where to find flashlights, fresh batteries, power banks to charge your phones, nonperishable food and first-aid supplies or essential medications. If you plan to use a generator, test it and make sure you know how to use it before you need it.
Discover more tips to protect your home at eLivingtoday.com.
Photo courtesy of Unsplash
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Health
5 Babyproofing Tips for Baby Safety Month
Babyproofing is about anticipating those discoveries before little ones make them. In honor of National Baby Safety Month, consider these tips you can use to make your home safer all year round.
5 Babyproofing Tips for Baby Safety Month
(Feature Impact) Outsmarting a baby can be harder than it sounds – especially when it comes to transforming your home into a safe place for them to explore. Through their eyes, a coffee table becomes a climbing opportunity, a dangling phone charger looks like a teething toy and a cabinet of cleaning supplies could be an exciting travel destination.
Babyproofing is about anticipating those discoveries before little ones make them. In honor of National Baby Safety Month, consider these tips to make your home safer all year round.
Install Gates and Doorknob Covers
Crawling babies and stairs are a bad combination. Make sure the two never have the chance to meet by securely installing safety gates at the top and bottom of staircases to thwart young explorers. Gates or doorknob covers can also block access to other rooms and areas you’d prefer to keep off limits, like kitchens, bathrooms and laundry areas.
Use Safety Latches Wisely
Cabinets and drawers can contain a myriad of dangerous items, from cleaning products to sharp objects and medications. Even if you have rooms gated off, treat safety latches and locked storage receptacles as a second line of defense to make sure babies and toddlers can’t rummage where they shouldn’t.
Stress-Test Furniture
As babies and toddlers transition from crawling to walking, they often try using furniture to pull themselves up. Tall or unstable objects like TV stands, small tables and bookshelves can tip over if they aren’t properly secured. Try giving these objects a shake to see whether they’re easily moveable or wobbly; if so, anchor them to the floor or wall when possible. While you’re at it, check for sharp corners at the right height to bonk little heads and cover them with softer edge protectors.
Cover Outlets and Stow Cords
Electrical outlets can be tempting targets for curious fingers. Outfit them with covers or plastic safety caps, especially if you don’t already have tamper-resistant receptacles with built-in mechanisms to block foreign objects from entering the slots. As you’re going about your outlet audit, pay attention to cords as well. When possible, tuck them away or secure them with cord organizing systems, and block access to objects like lamps where cords can be used for tugging and toppling.
See the World at Their Level
Although it might feel silly, one of the best ways to spot hazards around your home is to scout for them from a baby’s perspective. Try getting as close to the floor as you can then look around each room for anything that could interest a young child and pose potential danger. In particular, keep an eye out for small objects that could become choking hazards, like dropped coins, batteries or loose toy pieces.
As children grow, so do the needs of your space. Visit eLivingtoday.com for more ideas on designing your home to fit your family.
Photo courtesy of Unsplash
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