Reports from the U.S. Department of Energy or industry analysis from major automotive market research firms

Trump Team Proposes Cutting EV Support, Tariffs on Battery Materials, and Rolling Back Emissions Standards

Dec 16, 2024, 02:50 PM

The transition team of President-elect Donald Trump is planning to implement sweeping changes to U.S. automotive policy, aiming to cut support for electric vehicles (EVs) and impose tariffs on battery materials globally. According to documents seen by Reuters, the team recommends discontinuing federal funding for EV charging infrastructure, eliminating the $7,500 tax credit for EV purchases, and redirecting funds to national defense priorities, including securing supplies of batteries and critical minerals independent of China. The proposals also include rolling back emissions and fuel-efficiency standards to 2019 levels, which would allow for an increase in emissions per vehicle mile by about 25% and lower fuel economy by about 15%. Additionally, the team suggests blocking California from setting its own stricter vehicle emissions standards, a policy that was reversed by the Biden administration. These changes are intended to boost domestic production and protect U.S. automakers, including those producing EVs, while addressing national security concerns related to reliance on foreign battery materials. The transition team also plans to institute tariffs on EV supply chain imports, waive environmental reviews for federally funded EV infrastructure projects, expand export restrictions on EV battery technology to adversarial nations, support exports of U.S.-made EV batteries through the Export-Import Bank, and eliminate requirements for federal agencies to purchase EVs. The Department of Defense programs aimed at purchasing or developing electric military vehicles would also be ended.