BAKU (Reuters)

Cancelling the U.S. electric vehicle tax credit would be counterproductive and cede ground to car-makers in China, U.S. Energy Secretary Jennifer Granholm told reporters on Friday at the COP29 climate conference in Baku.

President-elect Donald Trump's transition team is planning to kill the $7,500 consumer tax credit as part of broader tax-reform legislation, Reuters reported Thursday.

Granholm stated, "It would be so counterproductive," when asked about the report. "You eliminate these credits, and what do you do? You end up ceding the territory to other countries, particularly China."