Toyota said Wednesday it will build an EV plant in Shanghai, China. The plant will produce a new Lexus brand EV vehicle.

The push comes as worries grow about a potential trade war brewing after President Donald Trump imposed tariffs on China and China retaliated.

Toyota Motor will establish a wholly owned company in Shanghai to develop and produce electric vehicles and batteries for the Lexus brand, with production set to start in 2027, the world's top-selling automaker said on Wednesday.

Tesla could soon lose its EV sales advantage as Washington lawmakers are taking their third shot at legislation to level the playing field with Rivian, Lucid and others.

Washington wants more electric vehicles on the road. It’s offered generous incentives for EV buyers and set deadlines barring new gasoline-powered car sales. The next step, some say, is revising a law that does not allow customers to buy an electric vehicle directly from the automaker,