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The South Korean automaker just opened an EV factory in Georgia. It’ll take a lot longer for others to catch up to Trump’s latest tariffs.
President Trump has introduced yet another round of tariffs that could upend the car industry. The newest volley in his trade war promises to slap an extra 25% tax onto any automobile imported into the U.S. It’s a measure meant to sound like a safeguard for American industry against foreign incursion. The reality, as usual, is a lot more complicated. These tariffs will punish many of the most promising EVs on the market, including those sold by Detroit.
The automotive toll of Trump’s tariffs was startling the last time around, when the administration said it would place a 25% tariffs on goods from Canada and Mexico, as well as 10% on Chinese imports. That proposal was particularly problematic for the car industry because automakers use a well-established North American production pipeline to reduce costs. Lots of vehicles, whether gasoline, electric, or hybrid, are built in Mexico before being sold in the United States, while plenty of auto parts manufacturing occurs in Canada.
On the electric side, that list of affected vehicles includes the Chevrolet Blazer EV and Equinox EV, as well as the Honda Prologue, which is based on a General Motors platform. All three are strong EV entries by legacy manufacturers trying to grab a chunk of the electric market as industry leader Tesla takes on water amid global rage at Elon Musk. But all three are manufactured at a GM plant in Mexico. So is the Mustang Mach-E, Ford’s flagship EV.
Heatmap has previously highlighted the Equinox, in particular, because the price of its entry-level version — around $35,000 before tax credits — makes it a compelling option for buyers who are shopping on price but interested in going electric. With a price marked up by 25%, it’s no longer competitive with gasoline-powered rivals. The Prologue has found an impressive niche in the market, especially for the many buyers who were waiting for a Honda-badged EV. But its broad appeal may not survive such a markup.
The newest Trump maneuver, a tariff on cars imported from any foreign country, creates another layer of economic chaos for EVs. These rules would target Japanese-made electric cars like the Toyota bZ4x and Subaru Solterra, German-built ones like those from BMW and Mercedes-Benz, and plenty more. Hyundai’s Kona EV, one of the more affordable electric models, is built abroad. Volkswagen moved assembly of its ID.4 electric crossover to Tennessee, but the ID.Buzz, the battery-powered revival of the classic VW bus, is not made in the USA.
Many of those foreign-owned companies were already moving manufacturing to the United States for basic economic reasons, and also to conform to the rules the Biden administration put in place governing eligibility for the $7,500 EV tax credit, which require that many key parts be sourced at home. Toyota and Honda have opened American plants; so have the German automakers. This could help them adjust to a new and convoluted reality. Hyundai’s new Georgia “metaplant” just opened and will produce the Korean automaker’s Ioniq 5 and Ioniq 9 EV crossovers. Its partner brand, Kia, makes the EV6 and EV9 in West Point, Georgia. These Southern factories will have a huge impact on the Korean brands’ ability to survive Trump-era tariffs and maintain their position as the biggest EV challengers to Tesla.
Trump ally Elon Musk stands to benefit most from this move, since Tesla does most of its manufacturing in the United States. Teslas aren’t 100% American; Musk estimates that 20% of what goes into his EVs comes from Mexico, and that the impact of Trump tariffs on Tesla is “not trivial.” This is a dodge. Yes, Tesla would be impacted by the 25% tariffs, but much less so than its rivals. It’s a bit like the EV price wars of a couple years ago, when Musk kept cutting the prices of his cars because he knew how hard it would be for legacy competitors to keep pace. It’s okay to take a punch if your enemies take a bigger one.
The question looming over all of Tesla’s rivals is how to survive this ever-shifting landscape of tariffs and penalties. Changes in the car industry are a long time in the making: It takes years to bring a new vehicle to fruition, to build a new factory, or to retool an old plant so it can manufacture a different vehicle. GM has spent years refitting a Kansas factory that once built the now-retired Chevy Malibu for the purpose of making the revived Bolt EV coming in 2026. It cannot, at the drop of a hat, suddenly begin to source and build the Equinox EV entirely within the borders of the United States of America. That’s why you’ll see plenty of lobbying over the course of the next month as the car industry tries to convince the administration to back off — or, if not that, to at least give their company a tariff exemption.
The impact for potential EV buyers is clear. New car prices will soar by thousands of dollars with Trump tariffs in place. That will be particularly troublesome for EVs, which are staring down the prospect of this administration trying to remove federal tax credits for Americans who buy electric. Used cars — the pathway to EV ownership for those who can’t afford the steep price tag of a new one — will get more expensive, too, thanks to rising demand from those priced out of new vehicles. If you really want to get into an EV, the best bet might be to act right now before any of this madness takes effect in April.
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People near the site of the disaster say they’re sick. But officials haven’t recognized any link between those symptoms and the fire.
People say they can still taste the metal from the Moss Landing fire. But no one in the local, state, or federal government is able to say why.
The story of Moss Landing got little attention compared to the scale of the disaster. On January 16 — days before Trump reentered office, and as fires continued to burn in and around Los Angeles, when tempers and attention spans were already strained — the Moss Landing Power Plant ignited. We still don’t know what caused the fire, but we do know a few crucial facts: Nearly all of the batteries at the 300 megawatt facility, one of the world’s largest, burned up in the fire, sending a colossal plume of black smoke soaring up from the site for days.
Two months after the blaze was extinguished, many people who live in the vicinity of Moss Landing, a couple hours south of San Francisco, say they’re still sick from the fire. Community organizers on the ground say the number of sick people is in the hundreds, at least. The symptoms range, but there are a few commonalities. Many report having bloody noses in the days immediately following the fire. In the long weeks that followed, they’ve had headaches that don’t respond to pain medications, rashes that resemble burns, and a recurring metallic taste in their mouths. They all say their symptoms go away if they leave their homes and go further away from the site. But the U.S. Environmental Protection Agency and California state regulators have given the all clear.
I have spent weeks trying to get to the bottom of what happened at Moss Landing. I’ve interviewed people who lived in the area and say they’ve experienced breathing issues and other difficulties, many of whom have gathered on Facebook to share photos, stories, and symptoms. Others have offered testimony about these illnesses in public fora and town halls. Multiple lawsuits have been filed against Vistra, the company that runs Moss Landing, over the fire, citing these health issues. Vistra denies the existence of evidence proving pollution from the fire is making people sick, and told me in a statement that the company is “committed to doing everything we can to do right by our community.”
“Moss Landing is not only home to our facility, it’s home to our employees and neighbors,” the statement reads.
And yet, the people say, their symptoms persist. One of the people who told me about their condition is Sheryl Davidson, a former receptionist who lives in the rural nearby town of Prunedale. One of her joys used to be doing Medieval cultural re-enactments, but since the fire she’s been unable to participate.
“My nose just started bleeding. It was traumatic,” she told me. “And I had asthma, but my asthma was miniscule. My whole life, I just had an inhaler. But the inhaler wasn’t working.”
Davidson has other symptoms, including headaches. She says a lump also developed in her face beneath one of her eyes, of which she sent me photos. Despite concerns that something in the air from the fire may have made her sick, she hasn’t left her home, a house she’d lived in since she was a child.
Part of the reason: No one is telling her to leave.
Officials in Monterey County, where Moss Landing is located, acknowledged to me in a statement that they received reports from medical providers that local residents sought care for symptoms related to the battery fire. The EPA said on January 20 that air monitoring throughout the fire incident found no substantial releases of hydrogen fluoride, a fatal pollutant released from battery fires. Records indicate that EPA tested for the particulate matter as well, but there’s no evidence it monitored specifically for heavy metals in the air. Vistra told me it has been doing environmental observations since the incident and is sharing the results with regulators, but said in a statement that it “has not detected risks to public health at this time.”
Davidson may have stayed, but others have left Prunedale, including Brian Roeder, who remembers seeing the fire break out while at home and deciding to leave town with his wife and son out of an abundance of caution. When they got back days later, the fire had been put out. But Roeder told me his wife, who he said is immunocompromised, began reporting breathing issues shortly after they returned. His son started coughing, as well. They quickly left home again, and have been living out of short-term rental apartments far away from the battery plant for weeks.
“This community has been significantly damaged, and they are not coming in to help anybody,” Roeder told me. “There’s been behind the scenes efforts, there’s been some work, but nothing commensurate with the size of this disaster.”
“I know that L.A. caught on fire at the exact same time,” Roeder continued. “That was the huge focus for the state. I know that planes were going down and we had a change in administration. But the fact remains that we, here, cannot explain the absence of support for what is happening from the state. And there’s been a pronounced absence.”
Roeder also started a community organization called Never Again Moss Landing, which has been collecting its own samples of the environment in consultation with a professional lab. In doing so, Roeder became part of a broader effort in the U.S. to create public safeguards for battery storage technology in the wake of Moss Landing. Ground zero for this push is, fittingly, California, where the state Public Utility Commission has responded to the fire by requiring battery storage facility owners to make emergency response plans and adhere to modern fire codes for battery storage.
Some Democratic lawmakers in California want to go further, empowering localities to be the final decisionmakers on whether storage projects get built, as opposed to state regulators.
In some pockets of the U.S., this push for battery safety risks morphing into a threat to the energy transition. For my newsletter, The Fight, I’ve chronicled how towns and counties across the U.S., from New York City to rural Texas, are now banning battery storage, citing the Moss Landing fire and the fear another battery fire could happen in their backyards.
By many metrics, Moss Landing is an outlier. The Moss Landing facility was a giant field of batteries inside a former factory, essentially trapping all these combustible mini-bombs prone to “thermal runaway,” a phenomenon where rising heat from a fire leads to a chain reaction of chemical ignition, inside an insulated box. Concerns about thermal runaway are a reason why almost all battery storage today is installed in storage containers and with an appropriate distance between individual batteries.
But Moss Landing is also a crucial test case for the future of battery storage and public trust.
This morning, the renewables sector took a big stride towards attempting to calm the rage against battery storage. American Clean Power, the leading renewables trade group, released an analysis of 35 battery storage fires in the U.S. from 2012 through the end of last year. Many of the incidents involved “early-generation” battery tech, it said, adding that “improved safety measures, such as advanced thermal management, suppression systems, and containment enclosures, significantly reduc[ed] the likelihood of large-scale incidents.”
The analysis does not speculate as to what may have caused the fire at Moss Landing, simply noting investigations into the incident are ongoing. But at the same time, ACP released a new blueprint for safe battery storage development. In the blueprint, the association acknowledges that some of its recommendations — including a requirement that all battery storage facilities meet a new fire safety standard produced years after Moss Landing was commissioned — are aimed at “holistically addressing concerns generated by the Moss Landing Fire.”
Residents are deeply suspicious of the official assessments denying what, to them, are obvious health impacts. To be candid, I can’t blame them. It strains credulity to imagine a battery fire of this size and scope right next door to you somehow creating no pollution worthy of public concern.
“When you burn [batteries] it moves toxic chemicals into the air,” said Tracey Woodruff, a former EPA senior scientist and policy advisor specializing in chemical contamination of the environment, who now works at the University of California San Francisco. “If this is an uncontrolled burn, you can’t just say there isn’t going to be fallout from that or exposure to the population.”
There’s data making people afraid too. In late January, researchers at San Jose State University alerted the public that they’d discovered “unusually high concentrations of heavy-metal nanoparticles” and a “hundreds- to thousand-fold” increase in nickel, manganese, and cobalt — metals all present in Moss Landing’s batteries — in soil two miles from the power plant in the Elkhorn Slough Reserve, one of the state’s biggest estuaries. Exposure to these metals can cause serious health issues, some of which mirror the symptoms described by residents in the area who are sick.
Exposure to dust with heavy metals can be dangerous at even relatively low levels. A county health advisory shared with local medical professionals in February urged doctors to complete a comprehensive physical of anyone concerned about the impacts of the fire on their health. It noted that breathing or coming into direct skin contact with “heavy metal dusts and other particulate matter from smoke” can result in a metallic taste and difficulty breathing, as well as exacerbate underlying conditions like asthma.
Discovering the metals’ omnipresence in the Slough after the fire led Ivano Aiello, a researcher at SJSU who collected that data, to conclude that the contamination is probably more widespread than is publicly understood.
“I freaked out [after the study] because I was breathing the stuff. I was out there for days and I had no idea,” he told me. “Then I alerted the authorities … and they did their own investigation.”
Subsequent studies conducted by county and state environmental officials, including within the Elkhorn Slough, found no level of these heavy metals that they said could be conclusively tied to the fire. On March 19, farm advisors at the University of California Cooperative Extension undertook a “limited study” that found a “slight deposition of metals (copper and manganese) may have occurred in one agricultural field closest to the battery fire site,” but that the “concentration of metals measured were within normal ranges for all soil types evaluated.” Dole, the giant produce company, which has operations in the area, told me that on its end “no health impacts have been reported and no soil contamination has been detected as a result of the Moss Landing battery fire.”
But Roeder and many other members of the surrounding communities are worried there isn’t enough testing being done to find out whether contaminants entered the atmosphere, especially since air pollution is rarely spread evenly. Like Covid-19, the only way we will ever know the extent of the problem is with more testing, testing, testing.
Roeder is trying to do this work himself. On what he says is his own dime, he and other members of Never Again Moss Landing have collected dust samples across the region in consultation with a credentialed lab in the state, BioMax, which he told me reached out after the fire.
On Wednesday, a local NBC affiliate reported that Don Smith, a toxicologist at the University of California San Diego, confirmed elevated levels of nickel, cobalt, and manganese in the dust samples collected by Never Again Moss Landing. “There is reason to be concerned,” Smith told the TV station, adding that people living near the plant should wear masks regularly if they’re interacting with dust in their homes and be careful not to disturb soil in their yards. “Both manganese and, to a lesser extent, cobalt are known to be neurotoxins. And nickel, of course, is recognized as a carcinogen.”
Frustratingly, though, there is no solid proof to date of a conclusive link between the illnesses and metal exposure — just a lot of people with symptoms, a study that hasn’t been replicated in other pieces of research, and samples collected by residents who are also involved in litigation against the company. Still, that’s a lot of evidence of a problem. Medical mysteries are also common in environmental catastrophes like the Flint water crisis and the infamous DuPont PFOA debacle in Parkersburg, West Virginia, in which obviously sick residents butted heads with regulators for years, demanding information and testing.
What’s next for Moss Landing? The three counties most impacted — Monterey, Santa Cruz, and San Benito — just concluded a community health survey that solicited comments from potentially impacted residents and received more than 1,500 responses, according to figures I reviewed that were shared at a recent Monterey County public meeting. When that study is out, we’ll have a comprehensive view of the locations where the sick live to see where it lines up with the plume that emitted from Moss Landing.
Taking a wider view, any society that’s going to rely primarily on intermittent energy sources like solar and wind needs battery storage to keep the lights on. That will require winning the public’s trust in battery technology. The Moss Landing fire was bad, and over time risks becoming an East Palestine moment for the energy transition. But the lack of a loud, sizable government response to calm the nerves of people publicly claiming illness is likely to be even more damaging to the future of the battery sector.
Administrator Lee Zeldin announced the cancellations weeks ago, but the agency has refused to provide details.
New documents obtained by Senate Democrats on the Environmental and Public Works Committee this week shed more light on the inner workings of EPA Administrator Lee Zeldin’s attempt to shut down hundreds of climate- and environmental justice-related grants.
Senators Sheldon Whitehouse of Rhode Island and Lisa Blunt Rochester of Delaware secured a list of 477 grants the EPA has “targeted for termination,” along with damning internal emails from the agency that showed its management knew that many of its terminations to date violated contracts with grantees.
Democrats on the committee sent a letter to Zeldin on Tuesday alleging that EPA was breaking the law and demanding that it rescind any grant termination notices it has sent out.
The list of grants appears to align with a press release the EPA published on March 10 stating that Zeldin had canceled more than 400 grants worth more than $1.7 billion in his fourth round of spending cuts. This was in addition to the $20 billion “green bank” program Zeldin has been attempting to cut. EPA did not say which grants it was canceling or why in any of these rounds of cuts, but last week, the Sierra Club obtained a partial list of what appeared to be the first three rounds through a Freedom of Information Act request.
While nearly half of the grants on the Sierra Club’s list were for research into low-carbon construction materials like steel and cement, all of the funds on the new list were awarded to nonprofits, Tribes, cities, states, and universities for projects in disadvantaged communities.
Many of the grants are from three Inflation Reduction Act programs: the Collaborative Problem-Solving Cooperative Agreement Program, which funds nonprofit efforts to create new partnerships with companies, local governments, or medical service providers to address environmental or public health issues; the Community Change Grant Program, which supports activities that reduce pollution and increase climate resilience; and the Government-to-Government Program, which subsidizes state and local government pilot projects and other activities that improve the environment and public health.
They include awards of between $20,000 and $20 million for community gardens, solar projects, air quality monitoring, energy efficiency upgrades, wildfire preparedness, clean water initiatives, protection during heatwaves, rural economic development, and job training, among many others.
Just over 130 of the grants are reported as being “financially closed,” or having a $0.00 remaining balance, meaning the EPA’s claim that it canceled more than 400 grants may have been inflated.
There is also overlap with the list the EPA provided to the Sierra Club. Heatmap identified 18 grants that appear on both. For these 18 grants, the Sierra Club list shows that they were canceled on the 21st or 22nd of February. The list obtained by the senators shows that they were “awarded” on those dates, but labels them “financially closed” or having a $0.00 remaining balance.
In their letter to Zeldin, Senate Democrats asserted Congress’ power over the federal purse, noting that the law specifically “directed the EPA to distribute $3 billion to improve environmental protection in communities facing economic hardship.” An internal email from the EPA’s general counsel notes that some of the grants were terminated on the basis that they funded DEI or environmental justice initiatives that “conflict with the Agency’s policy of prioritizing merit, fairness, and excellence in performing our statutory functions.” The senators’ letter argues quite the opposite — that these grants were meant to ensure a healthy environment for all Americans.
Secondly, they write that “any attempt to withhold these funds violates the Impoundment Control Act.” That’s a reference to a 1974 law that prohibits the executive branch from holding back congressionally appropriated funds without permission from Congress. The letter also admonishes Zeldin for violating federal court injunctions on President Trump’s funding freeze.
Lastly, the senators accuse the agency of knowingly violating the terms of its own contracts, citing an internal email from EPA’s Office of General Counsel which admits as much. The email acknowledges that many of the cancellation letters sent to grantees cited grounds for termination that were not valid under the grant contracts. At this, the Office of General Counsel essentially shrugs, noting that “no decision to retract the terminations is forthcoming,” and that grantees can dispute the decision or sue the agency if they want to.
The letter includes a series of 12 questions for the EPA, including requests for every termination letter sent to grantees and an explanation of what the agency plans to do with “the alleged $2 billion in federal funds ‘saved’ by EPA and DOGE grant terminations.”
In a statement to the Associated Press, the EPA confirmed that it received the letter, but that it has no plans to stop canceling grants. “As the Trump administration reins in wasteful spending of taxpayer dollars, EPA will continue terminating assistance agreements in line with terms and conditions,” the statement said.
Here is the full list of canceled grants released by the senators, published for the first time in a searchable, sortable format:
On skirting pollution rules, Arctic sea ice, and Empire Wind
Current conditions: Between 10 and 15 inches of rain fell across parts of South Texas, triggering severe flooding • Firefighters made progress containing some of the large wildfires burning in South Korea • It’s -7 degrees Fahrenheit at Greenland’s Pituffik Space Base, which Vice President JD Vance will visit today.
The Environmental Protection Agency has set up an email address that power plants and other industrial facilities can use to request a temporary exemption from President Trump on EPA air pollution rules. Firms can write to “airaction@epa.gov” and make a case for why their facilities should not have to abide by some nine Clean Air Act emissions rules, and for how long they’d like to be exempt. The president — yes, the president himself — will review the request and “make a decision on the merits.” The EPA argues that the Clean Air Act contains a section that allows the president to exempt industrial facilities from new rules for up to two years “if the technology to implement the standard is not available and it is in the national security interests of the United States to do so.”
The environmental protection community is not happy. “The new Trump EPA website invites hundreds of industrial sources of cancer-causing pollution and other toxics to evade science-based clean air standards that are designed to keep our families safe — all with a single email,” said Vickie Patton, general counsel of the Environmental Defense Fund. “This puts the health of all Americans on the line.”
Sea ice in the Arctic is at its lowest winter level ever recorded. March is usually when the ice is at its peak, but this year’s ice cover of 5.53 million square miles is about 30,000 square miles smaller than the previous lowest March peak recorded in 2017. “Warming temperatures are what’s causing the ice to decline,” ice data scientist Walt Meier told The Associated Press. The Arctic is warming about four times faster than the rest of the world, and less winter sea ice means more melt in the summer. Researchers warn that current warming trends mean the Arctic could see its first completely ice-free summer months as soon as 2035. “We’re going to come into this next summer season with less ice to begin with,” said Linette Boisvert, an ice scientist at NASA’s Goddard Space Flight Center in Greenbelt, Maryland. “It doesn’t bode well for the future.”
Activists from the anti-wind movement are circling Empire Wind and asking President Donald Trump to rescind the EPA air permit to the Equinor offshore project, Heatmap’s Jael Holzman reports in The Fight. Two prominent anti-offshore wind organizations — Save the East Coast and Protect our Coast-Long Island — announced this week in a press release posted to Facebook that they were petitioning the EPA to take the permit away, just like it did earlier this month with the Atlantic Shores project off the coast of New Jersey. Activists have also asked EPA to get rid of air permits for New England Wind and Vineyard Wind.
Earnings call mentions of “climate change” and other terms related to environmental issues and clean energy have plummeted by 76% over the past three years, according to a new Bloomberg analysis. “Green chatter” on S&P 500 companies’ quarterly calls peaked in 2022, just before the Inflation Reduction Act passed, and has been falling ever since. Anti-climate sentiment in the Trump administration has hastened the so-called greenhushing. At the same time, most corporate finance bosses say they aim to increase their green investments, and more companies are making climate commitments. So some progress is still being made, even if nobody wants to make a big deal out of it.
The Internal Revenue Service this week reopened the online portal for car dealerships to retroactively register electric vehicle sales to the tax agency, Heatmap’s Emily Pontecorvo reported. The change will make it easier for buyers to claim the EV tax credit on their returns after a major change to the EV tax credit program last year left many in the lurch. Before the change, all dealers had to do was give the buyer a “time of sale” report that they could submit to the IRS come tax season. But as of 2024, dealerships were expected to register every EV sale that was eligible for the tax credit through this new online portal. Not only that, they had to do so within three days of the sale. The portal would not allow entries dated more than three days post-sale. Many dealerships were unaware of the new requirements, and customers trying to claim the credit on their taxes have been getting error messages saying that their EVs were not registered with the IRS. In a notice to dealerships this week, first reported by NPR, the trade group said the IRS planned to roll out an update to the portal on Wednesday to allow for sales made in 2024 to be submitted.
“If any of this has made you nervous about getting an EV this year, remember that you have another, safer option for claiming the tax credit,” Pontecorvo explains. “Instead of claiming it on your taxes in 2026, you can transfer it to your dealer, who can take it off the sale price of the car on the spot. Just make sure they know about the online portal!”
“Perfectly executed, Mr. Trump! … You have pulled off the rare rope-a-dope: Your political action groups raised more than $75 million from the oil industry to help get you elected. But now that you’re in office, you’re shutting them in. And the best part is that voters have no idea: Americans continue to think that you support U.S. oil and gas drilling — and they like it.”
–Heatmap’s Robinson Meyer in an open letter to President Trump, aka Degrowth Donald