Granholm: Rescinding EV Tax Credit Would Cede Ground to China

Canceling the U.S. electric vehicle tax credit would be counterproductive and cede ground to car-makers in China, Energy Secretary Jennifer Granholm told reporters on Friday at the COP29 climate conference in Baku, Azerbaijan.

President-elect Donald Trump's transition team is planning to kill the $7,500 consumer tax credit as part of broader tax-reform legislation, Reuters reported Thursday.

"It would be so counterproductive," she said when asked about the report. "You eliminate these credits, and what do you do? You end up ceding the territory to other countries, particularly China."

“If we want to stand by and watch offshoring again and cede this territory, then we don’t have an industrial strategy,” Granholm added. “But if we want to compete, which we’re doing and we’re doing successfully, then we keep these incentives in place.”