Tariffs are coming and EV Tax Credit is Going Away

[M-J]

I understand this is a developing situation, but is Scout Motors taking any steps to preserve the expected under $60,000 price point in light of rising tariffs and the potential loss of the EV tax credit?

MJ

 

[Hedrock]

The EV tax credit repeal bill hasn’t passed the Senate yet, unless I’ve missed the news.

With 2 years to go I’d imagine that a) they’re doing whatever they can and b) anything can happen, especially with the abrupt changes of course the current admin is known for.

 

[J Alynn]

I feel like Jamie or Scott or someone has said things are fluid but they haven’t ever relied on the EV credit as part of their sales strategy other than to say the vehicles could qualify for the credit “if it exists”.

 

[cyure]

I feel like Jamie or Scott or someone has said things are fluid but they haven’t ever relied on the EV credit as part of their sales strategy other than to say the vehicles could qualify for the credit “if it exists”.

That sounds like something Jamie or Scott would say.

 

[BeerParty]

The Scout Home page says this: "Entry models starting as low as $50,000 with available incentives. Retail prices starting under $60,000." I assume that means the "under $60,000" price does not include incentives.

But, I am pretty sure that the batteries were coming from Canada. With a new 25% tariff in the US on goods from Canada, if nothing changes I expect a significant bump in "retail prices" when the trucks come to market.

 

[cyure]

The Scout Home page says this: "Entry models starting as low as $50,000 with available incentives. Retail prices starting under $60,000." I assume that means the "under $60,000" price does not include incentives.

But, I am pretty sure that the batteries were coming from Canada. With a new 25% tariff in the US on goods from Canada, if nothing changes I expect a significant bump in "retail prices" when the trucks come to market.

All we can do is wait and see. Things seem to change from one day to the next.

 

[Nmagnatta]

I was already Budgeting for 65K for the pricing point. So even if the EV Incentives go away Ill be fine with it.

 

[Chavannigans]

Vote accordingly at the next election.

 

[ID_ENG]

Something to be said about vehicles manufactured in the states too though. They won't be hit with same tarriffs or any. Understanding some parts or materials will likely need to be sourced from over seas.
I also believe I heard that new factories can essentially be or have huge tax write off potential. This is all with a grain of salt as I just hear bout things I'm not an avid economist.

 

[Chavannigans]

Something to be said about vehicles manufactured in the states too though. They won't be hit with same tarriffs or any. Understanding some parts or materials will likely need to be sourced from over seas.
I also believe I heard that new factories can essentially be or have huge tax write off potential. This is all with a grain of salt as I just hear bout things I'm not an avid economist.

That would all be lovely if it was true.

But tariffs will cause inflation both direct and indirect for just about every aspect of our lives.

Even if a company like Scout or Rivian sourced every single component from the US, other companies that supply parts from overseas for domestic manufacturers will raise their prices, so American suppliers will raise their prices too.

It in no way is a good thing for the consumer and is very much a regressive policy.

 

[Cranky Canuck]

I know this won't apply to most people here but for the few Canadians in the forums Canada is bringing back the $5,000 EV rebate. It went away earlier this year because it was more popular than anticipated and ran out of money. Looks like it'll get funded again though so that's good!

Hopefully Scouts will be CUSMA compliant and avoid any counter-tariffs in Canada.

https://canadianautodealer.ca/2025/05/ottawa-to-bring-back-ev-incentives-minister-joly/

 

[Cranky Canuck]

Vote accordingly at the next election.

Assuming you guys have one.

 

[Cranky Canuck]

That would all be lovely if it was true.

But tariffs will cause inflation both direct and indirect for just about every aspect of our lives.

Even if a company like Scout or Rivian sourced every single component from the US, other companies that supply parts from overseas for domestic manufacturers will raise their prices, so American suppliers will raise their prices too.

It in no way is a good thing for the consumer and is very much a regressive policy.

I was going to say the same thing.

Tariffs raise the price floor.

If the "cheap" overseas goods are tariffed, the US competitors will price their goods to be at least the same as the tariffed overseas goods. They'll likely price things even higher if they can get away with it or if they still can't go as low as the overseas competition.

So even if US production increases output to take up the slack, their costs will likely be higher than what was being done overseas (which is why it was done overseas to begin with) so they'll charge what they need to in order to turn a profit. If the overseas goods with tariffs are higher than the price domestic production needs to be profitable then the domestic producers will increase their margins (because they don't have to compete) which means their prices will go up.

End result, all prices go up to a new price floor - aka inflation.

 

[Chavannigans]

Assuming you guys have one.

That’s about as funny as the 51st state jokes

 

[Cranky Canuck]

That’s about as funny as the 51st state jokes

It wasn't a joke. It's an honest concern.

 

[Chavannigans]

It wasn't a joke. It's an honest concern.

Our administration doesn’t seem to be joking either.

Let’s move on…

I was going to say the same thing.

Tariffs raise the price floor.

If the "cheap" overseas goods are tariffed, the US competitors will price their goods to be at least the same as the tariffed overseas goods. They'll likely price things even higher if they can get away with it or if they still can't go as low as the overseas competition.

So even if US production increases output to take up the slack, their costs will likely be higher than what was being done overseas (which is why it was done overseas to begin with) so they'll charge what they need to in order to turn a profit. If the overseas goods with tariffs are higher than the price domestic production needs to be profitable then the domestic producers will increase their margins (because they don't have to compete) which means their prices will go up.

End result, all prices go up to a new price floor - aka inflation.

Thank you for the better explanation. You did a much better job than I did


This is what leads to the “price stickiness” that the media is trying to spin with softer language.

The US EV battery industry does have some potential avenues to avoid those tariffs, but it takes years for permitting and extraction of the minerals to source them domestically.

So prices may go up but it can take years for them to come back down with a more competitive domestic market.

Even if the tariffs all go away overnight, uncertainty will keep prices high since nobody knows if they will be back on tomorrow.

 

[THil08]

Tax credit is removed going to be removed on December 31, 2025 via expiration date changed by the Big Beautiful Bill. Let's see how EVs really sell with being priced correctly, fair market.

so, anyone that wants to drop their reservations go for it. It helps me move up the line.

 

[Chavannigans]

Tax credit is removed going to be removed on December 31, 2025 via expiration date changed by the Big Beautiful Bill. Let's see how EVs really sell with being priced correctly, fair market.

so, anyone that wants to drop their reservations go for it. It helps me move up the line.

Our fuel industry and prices are heavily subsidized by the government.

Federal EV rebates seemed like a fair trade off in my opinion.

 

[Hedrock]

Our fuel industry and prices are heavily subsidized by the government.

Federal EV rebates seemed like a fair trade off in my opinion.

Not to mention the 25% chicken tax effectively subsidizing the vastly profitable light truck (including many SUVs) segment.

 

[Chavannigans]

Not to mention the 25% chicken tax effectively subsidizing the vastly profitable light truck (including many SUVs) segment.

I am not sure if subsidize is the correct word, but The Chicken Tax certainly bolsters the domestic market and disincentives them from innovating or presenting value to the customers.