EVs Vanish From U. S. Shelves as Tariffs and Taxes Hit Hard
USASun May 03 2026
In 2026, more than a dozen electric cars disappeared from American showrooms. Tesla’s old Model S and X, Honda’s whole 0 Series, Volvo’s EX30, BMW’s i4 and iX, plus several Hyundai and Kia models were all pulled. None of them had broken; the problem was money.
High import duties made foreign cars too expensive to sell. Hyundai’s cheap Kona Electric can no longer cover the 25 % tariff when shipped from Korea. The same goes for Hyundai’s Ioniq‑6 and Kia’s Niro EV. Volvo tried to move its EX30 out of China, but the U. S. added another 25 % fee on all imported cars. The EX30’s price jumped to over $40, 000 and sales fell.
Some companies chose to stop making EVs altogether. Honda cancelled its 0 Series, a line that would have cost the company billions in lost revenue. The decision pushed Honda to focus on hybrids, which sold more than 30, 000 units last year. Tesla’s Model S and X were retired because their sales were tiny—less than 3 % of Tesla’s total. Elon Musk said the production lines would become factories for a future robot called Optimus.
Other brands simply shifted to newer models. BMW’s i4 sedan and iX SUV are being replaced by cars built on a new platform called Neue Klasse. The i4 will stop production in late 2026, and its successor, the new i3 sedan, will start making at Munich in August. BMW’s plan is to offer cars that are faster, farther, and cheaper.
All these moves happen while the world’s total EV production is climbing. Yet in the U. S. , the choice of electric cars shrinks because tariffs, a 100 % duty on Chinese-made EVs, and the end of the $7, 500 federal tax credit make imports unprofitable. Only vehicles built in America stay on the road, and even some of those are being cancelled.
The result is a market where fewer models mean less choice for buyers, even as electric driving becomes more popular worldwide. Policymakers and automakers must decide whether to keep pushing EVs or shift focus again.