Several car models are seen lined up. Mikbiz/Shutterstock

The U.S. automotive industry experienced significant changes in 2025 as the expiration of electric vehicle (EV) subsidies, the introduction of tariffs, and regulatory rollbacks reshaped both demand and supply.

The shifts pushed the market away from EVs toward hybrids and traditional internal combustion engine vehicles, while also favoring domestically produced models over foreign-made cars.

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