Reuters Econ World Will Trump’s Iran war jumpstart the EV revolution?
Mar 25, 2026
Mike Colias, U.S. autos editor and EV expert, gives concise analysis of how an Iran-driven energy shock might reshape the electric vehicle market. He discusses price psychology, China’s manufacturing edge, Europe’s stricter rules, hybrids as a bridge, and whether fuel-price spikes can shift American car-buying behavior.
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1970s Oil Shock Reshaped US Auto Market
- The 1970s oil shocks permanently reshaped the US market by boosting small, fuel-efficient Japanese cars over Detroit's gas guzzlers.
- Mike Colias explains Japanese automakers exploited demand for affordable efficient cars and gained lasting market share.
Regulatory Rollbacks Undercut US EV Momentum
- US regulatory rollbacks under President Trump reduced incentives and emission rules, weakening automakers' motivation to sell EVs.
- Colias says rolled-back standards and removed tax credits made EVs less attractive for firms focused on profitable ICE models.
China’s EV Push Looms Over Protected US Market
- China’s EV surge and exports threaten legacy automakers, but US trade barriers currently shield domestic makers from cheap Chinese competition.
- Colias warns that tariffs and bans keep Chinese EVs out for now, but that protection may not last.
