New trade barriers are increasingly being used to restrict or incentivize the flow of clean energy technology across borders, according to the authors of the newly released report. These measures are specifically targeting the electric vehicle sector, with countries like the United States and Türkiye implementing significant price hikes on imported cars to manage market competition and supply chain risks.
“Most recent policies have focused on electric vehicles and batteries, accounting for more than ten effective tariff changes in these sectors. Notable measures include Türkiye and the United States imposing 25% tariffs on passenger car imports, with Türkiye applying an additional 30% tariff on electric vehicles and plug-in hybrids.”
This means that governments are using taxes on imports, known as tariffs, to make foreign-made electric cars more expensive for local buyers. By adding these extra costs, countries are trying to protect their own car manufacturers and reduce their reliance on a small number of foreign suppliers. This strategy shows how nations are now using economic tools to ensure their own energy security and industrial competitiveness.
The report “State of Energy Policy 2026” was published by the International Energy Agency in France in April 2026. It was prepared by the World Energy Outlook team under the direction of Laura Cozzi, the IEA’s Chief Energy Modeller.
