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FACT SHEET: President Trump Is Making It Harder For Americans To Choose EVs As Gas Prices Are Skyrocketing

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Last Updated: 3/24/26

President Trump’s military actions in Iran are causing gas prices to skyrocket across the country, with the average gas price up over a dollar since the war started as of March 24. Simultaneously, the Trump administration is advancing policies to make it harder for Americans to avoid pain at the pump by purchasing an EV, by removing tax credits for new EV purchases, and by limiting funding to expand the U.S.’s EV charging network. Automakers have scaled down plans to manufacture and sell new EVs in the U.S., eliminating good-paying jobs and removing choices for Americans seeking to avoid high costs at the pump. 

THE AMERICAN PUBLIC IS STRUGGLING WITH HIGH GAS PRICES

• Average gas prices rose to $3.97 per gallon on March 24, up $1.01 since the war began.
• Americans spend roughly $3.7 million more per day for every one-cent increase in the national average price of gas, and as of March 19, higher gas and diesel prices were costing Americans half a billion dollars more every day.
• For every dollar gas prices rise, Americans spend an additional $122 billion per year at the pump, or about $1,000 per household per year. 
• Experts predict that retail gas prices will rise 5 to 10 cents a day, after some companies already raised their wholesale prices for gasoline by 25 cents a gallon immediately. Every $10 per barrel increase could push the price of gas Americans see at their local stations by 20 to 30 cents a gallon. 

THE TRUMP ADMINISTRATION WANTS IT TO BE IMPOSSIBLE FOR AMERICANS TO CHOOSE CARS THAT AREN’T IMPACTED BY GAS PRICES

• The Trump administration is making it impossible for states to access funding to build EV charging networks.
  • In February 2026, the Trump administration proposed a rule that would make the $5 billion NEVI program effectively unusable, according to a lawsuit filed by 20 states’ attorneys general.
  • In January 2026, a judge ruled that the U.S. Department of Transportation had illegally withheld NEVI funding and ordered the funds released under their original terms.
• The Trump administration’s and Congressional Republicans’ One Big Beautiful Bill Act repealed tax credits, which made EV prices lower than comparable gasoline-powered cars. Sales of U.S. light vehicles fell 6.5% in October due to slower EV sales following the end of the EV tax credit. 
• The EPA’s reversal of the Endangerment Finding will further undo rules and incentives to drive automakers towards low or zero-emission vehicles.

EVS GIVE AMERICANS MORE AFFORDABLE CHOICES

• EVs are cheaper to own than gas-powered vehicles over their lifetimes.
  • The average national gas price, at $3.98 per gallon on 3/24, is near the $4 per gallon tipping point where the total cost of ownership for EVs becomes lower than for gas-powered vehicles.
  • EVs are cheaper to refuel than gas-powered cars; gas would have to be below $2 a gallon in most states to be as cheap as charging an EV.
  • Driving a fully electric car can save Americans $2,200 per year on fuel. 
• EVs give Americans more vehicle choices:
  • The U.S. EV market now has more than 50 unique models, and excess inventory is lowering prices, giving consumers more affordable options.
  • Carmakers are planning to roll out at least six new electric SUVs in the U.S. with a price tag at or below $35,000 to meet increasing demand for small- to medium-sized SUVs. 
• EV sticker prices are falling:
  • The average purchase price of new EVs fell by 2.3% between September 2025 and January 2026, while the average purchase price of new gas-powered vehicles rose by 2.5% over the same period.
  • The premium for a used EV over a used gasoline vehicle narrowed to $1,376 in January 2026 from $2,591 in December 2025, lowering the barrier to entry for customers interested in EVs. 
  • Automakers offer lower-cost EVs; General Motors’ Bolt compact and the Nissan Leaf both have starting prices below $30,000.

AUTO MANUFACTURERS ARE ROLLING BACK THEIR EV PLANS BECAUSE OF THE TRUMP ADMINISTRATION’S POLICIES

• Automakers have axed five U.S. EV models in 2026.
  • Honda blamed “the easing of fossil fuel regulations and revisions to EV incentives” for its decision to cancel the production and sale of three EV models in the U.S. Instead, the company plans to increase production of gas-powered cars in 2026. 
  • Hyundai is discontinuing the IONIQ 6 after the 2025 model year. 
  • Kia has not confirmed that it will offer a 2026 EV6 model and announced that it was indefinitely delaying the introduction of a three-row electric SUV to the U.S. market, despite previous plans for it to go to on sale at the end of 2025.
• Auto manufacturers are taking massive financial hits as they roll back plans to expand EV manufacturing.:
  • Stellantis is taking a $26 billion hit to its profit to reverse its EV push and shift its North American product line back to gas-powered vehicles. 
  • General Motors plans to take another $6 billion in writedowns due to production cutbacks at its EV and EV battery operations. GM has now taken $7.6 billion in writedowns on its EV investments.