Policy impacts economics of EV manufacturing in new ways

National government or trade bloc policy can directly impact of the economics of the transition to electric vehicles (EVs). In the US this is most evident through the Inflation Reduction Act (IRA). In addition, US tariff policy may yet impact Chinese EVs but in Europe the likely imposition of additional tariffs on Chinese EVs will certainly impact manufacturing location decisions of both European and Chinese manufacturers: the near term economics of vehicle production will be impacted by policy makers to a greater extent than in the recent past when market liberalisation and tariff reduction were the over-riding policy tools.