On the topic of electric vehicles and the unintended consequences of a protectionist industrial policy, my Cato colleague Scott Lincicome recently noted on Twitter that German automaker Volkswagen just debuted a small, very affordable electric vehicle that won’t be sold in the United States in part because of protectionist U.S. subsidies. In particular, several news outlets report that Volkswagen does not plan to build the ID.2all at its North American factories in Tennessee and Mexico—and thus it won’t be eligible for the EV tax credits passed as part of the Inflation Reduction Act.
Advertisement
Join the conversation as a VIP Member