EU and US discussing an exemption that would include EVs from European members in US tax credits
The European Union has asked the United States to include EVs, batteries, and other sustainable products sold on US soil in federal tax credits, similar to benefits it currently offers its North American neighbors. According to a recent report, the US and EU are in discussions about what’s possible.
A large prompter in the US reaching a critical mass point of EV adoption has been the federal and state tax credits in place for electric vehicles and their charging infrastructure. Depending on the vehicle, a person’s filing status, and annual income, US taxpayers can qualify for up to $7,500 back at the end of the fiscal year, not to mention additional exemptions available at the state level.
US automakers like Tesla and GM surpassed the 200,000 unit threshold for EV sales years ago, thus disqualifying them from tax credits, while plenty of EVs from European automakers still qualified. Since taking office, the Biden administration has been adamant about expanding electrification and electrical grid support throughout the US, including federal fleets, school buses, and passenger mobility.
This past August, President Biden signed what could be one of the most noteworthy pieces of legislation in his presidential legacy with the Inflation Reduction Act (IRA). The bill extends federal tax credits through 2032, slashes the 200K unit threshold, and promotes North American EV manufacturing.
As one would imagine, European countries and their automakers have been less excited about new tax credit terms under the IRA, including the requirement that the vehicles, their batteries, and the majority of battery components must be built in North America.
Now, those European countries are speaking up and are asking the US to once again include its EVs in the revised tax credits, despite the pro-North American assembly terms.
Could European EVs soon qualify for US tax credits?
Possibly! According to a report from Automotive News Europe, the prospect of European EVs qualifying for tax credits in the US is at least being discussed. Czech trade minister Jozef Sikela said the European Union has asked the US to treat its member’s EVs, batteries, and other charging equipment as it would for Mexico and Canada, qualifying for revised tax credits.
As members of North America sharing a border with the United States, one could argue Mexico and Canada are more incentivized to support US production and commerce and are, thus, worthy of credits. The EU argues otherwise, stating that the Inflation Reduction Act discriminates against European automakers and other manufacturers.
At its core, the revised terms of federal tax credits in the IRA are not necessarily to keep certain countries or automakers out but to promote manufacturing and supply chains in the US and its neighboring countries. The EU’s counter to that argument is that it currently offers the same tax credits for EVs and their materials, regardless if they’re made in the EU or US.
Sikela, whose home country currently holds the rotating presidency of the EU, was part of a recent meeting in Prague between EU trade ministers and US Trade Representative Katherine Tai. Following the meeting, Sikela said there was a willingness on both sides to reach some form of a deal that would qualify European EVs for US tax credits.
To what extent a potential deal may bring EU products remains unclear, but Sikela is already managing expectations:
We are expecting a derogation (in the US IRA) for EU member states – ideally we would like to have the same as Canada and Mexico, but we have to be realistic and see what we can negotiate.
EU Trade Commissioner Valdis Dombrovskis said a task force will meet for the first time this week to assist in solving the issue. He followed up by saying:
We are focusing on a negotiated solution before we move on to other considerations.
The new terms for federal tax credits in the US will kick in on January 1, 2023, and will affect many local automakers as well as those in European countries. More to come on this story as it develops.
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With new models rolling out from General Motors, Porsche, Honda, and several others, US EV sales increased by over 10% in the first three months of 2025. Nearly 300,000 EVs were sold in the first quarter of 2025. These were the top-selling models.
New EVs drive US sales growth in Q1 2025
Electric vehicle sales showed mixed results in the first quarter. Although Tesla is the center of attention as it continues to lose market share, several new EV models made an impressive debut.
With over 30,000 EVs sold in the first quarter, more than double the number sold last year, GM surpassed Ford and Hyundai Motor, placing second behind Tesla. GM’s Chevy is now the fastest-growing EV brand in the US, with the new electric Equinox, Blazer, and Silverado arriving.
GM sold 10,329 Chevy Equinox, 6,187 Blazer, and another 2,383 Silverado EVs in Q1. Thanks to its partnership with GM, Honda had an impressive sales quarter, selling over 14,000 EVs, including its luxury Acura brand.
The Prologue SUV remained one of the top-sellers with 9,561 units sold in the first quarter, while the Acura ZDX added another 4,813.
According to Cox Automotive, Honda led EV sales growth for new entrants in Q1, followed by Acura, Jeep, and Dodge.
Jeep sold 2,595 Wagoneer S models during the quarter, its first electric SUV sold in the US. Dodge, another Stellantis-owned brand, sold 1,947 Charger EVs, or what it calls the world’s first electric muscle car.
Although Chevy’s Equinox EV made a statement in Q1, Ford’s Mustang Mach-E remained the top-selling non-Tesla with 11,607 models sold.
| Rank | EV model | Q1 2025 sales |
| 1 | Tesla Model Y | 64,051 |
| 2 | Tesla Model 3 | 52,520 |
| 3 | Ford Mustang Mach-E | 11,607 |
| 4 | Chevrolet Equinox EV | 10,329 |
| 5 | Honda Prologue | 9,561 |
| 6 | Hyundai IONIQ 5 | 8,611 |
| 7 | Volkswagen ID.4 | 7,663 |
| 8 | Ford F-150 Lightning | 7,187 |
| 9 | BMW i4 | 7,125 |
| 10 | Tesla Cybertruck | 6,406 |
After introducing the upgraded 2025 IONIQ 5 (which now has even more range and an NACS charging port), Hyundai sold 8,611 electric SUVs in Q1, an increase of 26% from last year.
Porsche had the highest EV sales volume growth after launching the electric Macan. With 3,339 units added, the Macan EV made up for Porsche Taycan sales falling 18% to just 1,019.
As Cox Automotive Analyst Stephanie Valdez Streaty noted, “The year certainly started strong, but the road ahead will be anything but smooth.”
Trump ending federal incentives and introducing new tariffs will “pose a monumental challenge for many automakers,” according to Valdez Streaty. Despite several new models arriving and significant incentives being offered (at least for now), the rest of 2025 “will likely be a volatile one for EV sales in the US.”
Ready to score some savings while they are still here? We can help you get started. You can use our links below to find deals on the top-selling EVs in your area.
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![Electric concrete pump truck can drive 30 miles, pump 65 cubic yards [video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/04/putzmeister_electric-pump.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
Based on a capable Volvo FM Electric 8×4 chassis, Putzmeister revealed one of the world’s largest all electric concrete pump trucks at the bauma equipment expo in Munich, Germany this week. The zero-emission concrete pumper can up to 50 km and pump approximately 50 cubic meters of concrete on a single charge.
50 km (a little over 30 miles) and 50 cubic meters (about 65 cubic yards) may not seem like impressive numbers, but consider this: a single cubic yard of concrete weighs a little over 4,000 lbs. (2 tons). A bit of simple math later, and you’ve got a quiet, vibration-free machine blasting (65 cu. yds ×4,100 lbs./yd = 266,500 lbs.) of construction material nearly 140 feet (42 meters) in the air.
That’s over 130 tons of construction material moved a really long way, and that’s (of course) without the use of diesel or gas.
“Volvo Trucks is the innovator when it comes to new technologies in combination with electric trucks. After presenting electric concrete mixers and heavy applications for mining, we are proud to show yet another world-class innovation for the construction segment here at bauma,” says Christoph Fitz, Head of Sales at Volvo Trucks in Germany. “With this electric pump truck, customers can have a zero-exhaust emission solution, low-noise operation and an efficient process thanks to the work-while-charging capacity.”
The Volvo FM Electric-based concrete pump is motivated by a pair of electric motors developing a continuous 330 kW (442 hp) of output through the company’s proprietary I-Shift gearbox. The truck’s four battery packs add up to 360 kWh of capacity, which can DC fast charge at speeds up to 250 kW or operate continuously (pumping even more material) with grid power or PU500 remote power connection.
Electrek’s Take
There will surely be a few nay-sayers who’ll try to cite the relatively short-sounding range of trucks like this, or the 100-ton Tadano mobile electric crane, but the range is typically more than enough to operate in urban environments and motivate the asset across even the largest job sites. Additionally, the ability to plug in to grid power and operate 24/7 makes all of that quieter, safer, cleaner … and moot.
SOURCES | IMAGES: Putzmeister; Volvo Trucks.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes an analysis of how the Trump tariffs will affect e-bike pricing in the US, USB-C chargeable e-bikes launched by Ampler, Specialized e-bike recall, Juiced Bikes revived as a brand, kayak camping with the JackRabbit XG Pro, Walkcar’s new device that does the walking for you, and more.
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