Trump's Sweeping Tax Bill: Shaking Up EVs, Senior Deductions, and Education Savings

President Donald Trump's recently enacted tax legislation is poised to reshape various facets of the U.S. economy, impacting electric vehicle (EV) manufacturers, senior citizens, and educational savings.

The termination of the $7,500 federal EV tax credit for buyers is expected to notably affect larger EV producers who have exceeded certain sales thresholds, such as Tesla, which delivered over 336,000 vehicles in the first quarter of 2025. Analysts suggest this could further depress Tesla's sales volume and potentially threaten a significant portion of its 2025 profits. Conversely, smaller EV companies like Rivian and Lucid saw their stock values increase. While Rivian's vehicles typically don't qualify, the company has found a workaround, and Lucid vehicles remain eligible for the credit.

The legislation also introduces a temporary $6,000 increase to the standard tax deduction for individuals aged 65 and over, or $12,000 for qualifying couples, from 2025 through 2028. This deduction primarily benefits upper-middle-income seniors, as this is an income tax deduction, not a direct cut to Social Security taxes, and could potentially accelerate the insolvency timeline for Social Security and Medicare.

Furthermore, the bill significantly modifies 529 education savings plans. Professional credential fees are also now covered. While enhancing versatility, these changes are expected to largely benefit higher-income families. The bill also introduces ""Trump accounts,"" a new tax-advantaged investment vehicle for children.

In trade, President Trump announced a deal with Vietnam which imposes a 20% tariff on Vietnamese exports to the U.S., with a higher 40% levy on goods deemed transshipped. China's Ministry of Commerce has acknowledged the deal, expressing opposition to agreements that negatively impact Chinese interests and vowing countermeasures if necessary.

The sweeping legislation is expected to face ongoing political scrutiny, particularly concerning healthcare. Projections indicate that certain healthcare-related cuts could lead to more than 10% more Americans losing health insurance by 2034. While the U.S. economy currently shows resilience, economists caution about broader signs of economic deceleration. Despite initial evidence of a limited impact of tariffs on consumer prices, concerns persist that substantial federal borrowing could sustain higher long-term interest rates, increasing loan costs.