Worldwide, electric vehicle (EV) sales are growing, now making up 25% of all new cars sold in the global market. In the United States, however, EV sales are declining, decreasing by 27% year over year in 2026, according to data released by Cox Automotive’s Kelley Blue Book.
Why is America going in the opposite direction from the global trend?
Many foreign countries are implementing incentives and tax exemptions to foster EV adoption. In the U.S., federal policies on incentives for renewable energy are fluctuating, and with them, the sales of EVs.
New EPA guidelines delay vehicle emission standards compliance
In May 2026, the EPA proposed delaying compliance for vehicle emission standards set by the Biden administration that were implemented to encourage the expansion EV technology.
The EPA said this change will lower prices and increase consumer choices for vehicle purchases.
“The American people have been very clear; they do not want EVs forced upon them,” EPA Administrator Lee Zeldin said in a press release announcing the change. “This proposal aims to return EPA regulations to reality, restoring consumer choice, protecting good paying American jobs, and strengthening the nation’s global competitiveness.”
EV sales were trending upwards under the Biden administration, more than quadrupling during Biden’s term, likely due to his public encouragement of decreasing carbon emissions. With a shift in policy, that trend has reversed.
In 2022, 42% of Americans said they would consider purchasing an electric vehicle, according to data recently released by Pew Research Center. Today, that number is down to 33%.
Policy under the Biden administration pushed for EV innovation and adoption over environmental concerns. The Trump administration is focused more on affordability for the consumer. While the debate continues over which goal to pursue, EV adoption in the U.S. is plateauing.
The U.S. is falling behind in EV innovation
Only 10% of cars sold in the U.S. in 2025 were electric or plug-in hybrid vehicles. This number sits well below both the 25% global average and sales reported by other countries.
Though U.S. innovators were pioneers in the early stages of EV adoption, China now sits as the world leader, accounting for 75% of global production in 2025.
China has provided more than $230 billion in government support for EVs in the past two decades. The country has 4.7 million public charging points, more than anywhere else in the world.
Of the top 10 EV manufacturers, seven are from China, two are from Germany and only one — Elon Musk’s Tesla — is from the U.S., according to EV Magazine. China’s BYD is largely considered the world’s top EV seller.
And, China isn’t the only country where the influence of government encouragement on EV adoption is evident.
EVs and hybrids made up 97% of new car sales in Norway, likely given their extensive encouragement of zero-emission vehicles. In the Netherlands, which has heavily invested in EV charging infrastructure, EVs and hybrids account for at least half of all new car sales.
The future of EV policy
As the use of EVs across the world continues to grow, some say federal involvement will have less of an effect, especially as EVs become more affordable.
“What comes next will be driven less by policy and more by fundamentals: more affordable products, smarter pricing strategies, and continued investment in infrastructure,” Stephanie Valdez Streaty, director of insights at Cox Automotive said. “The timeline has shifted, but the direction hasn’t.”