Updated · Information Technology and Innovation Foundation · May 12
ITIF Urges $5 Billion U.S. Auto Strategy to Counter Chinese EV Threat
Updated
Updated · Information Technology and Innovation Foundation · May 12
ITIF Urges $5 Billion U.S. Auto Strategy to Counter Chinese EV Threat
2 articles · Updated · Information Technology and Innovation Foundation · May 12
ITIF’s new report calls for a national motor-vehicle industrial strategy centered on a $5 billion innovation package, a new NIST auto office and broader support for autonomy, batteries and supply-chain modernization.
The think tank argues U.S. competitiveness has eroded sharply: America’s share of global auto production fell to 14.7% from 46% in 1965, while the cumulative motor-vehicle trade deficit reached $3.3 trillion.
Its recommendations pair tougher China measures—keeping 100% tariffs on Chinese EVs and blocking Chinese vehicle production in the U.S.—with domestic steps including more robotics incentives, stronger supplier digitalization and expanded workforce training.
ITIF also urges ending EV mandates while still funding EV R&D, replacing stricter CAFE rules with a higher gas tax, and creating uniform national auto regulations instead of state-by-state emissions and sales rules.
The report frames autos as a strategic industry worth $1.2 trillion a year, warning that without a coordinated policy the U.S. risks falling further behind China in EVs, batteries and advanced vehicle technologies.
While America shields its car market, is it accidentally surrendering the global EV future to China?
With fewer EV incentives and blocked imports, are American drivers facing a future of more expensive, less advanced cars?
China Surpasses 7 Million EV Exports: The Urgent Challenge to U.S. Auto Industry and National Security
Overview
The U.S. auto industry is facing an urgent threat as China’s electric vehicle sector rapidly advances. Chinese carmakers are looking to set up factories in Mexico, using North American trade rules to bring ultra-low-priced EVs into the U.S. market. These Chinese EVs are much cheaper than American models, with some costing less than half the price of U.S.-made vehicles. This price gap, combined with the potential for a flood of imports, has prompted urgent calls for legislative and strategic action in the U.S. to protect jobs and maintain competitiveness.