Legislation passed by Congress or executive orders from the Trump administration

Trump Team Proposes Cutting EV Support, Imposing Battery Tariffs for National Defense

Dec 16, 2024, 03:17 PM

The incoming Trump administration is set to make significant changes to U.S. automotive policy, focusing on reducing support for electric vehicles (EVs) and altering emissions standards. According to a document seen by Reuters, Trump's transition team recommends cutting off government support for EVs and charging stations, imposing tariffs on all battery materials globally, and redirecting funds from Biden's $7.5 billion plan for charging stations to battery-minerals processing and national defense supply chains. The team also proposes to eliminate the $7,500 tax credit for EV purchases, which could impact sales and production of EVs by major automakers like General Motors, Hyundai, and Tesla. Additionally, the transition team aims to relax emissions and fuel-economy standards back to 2019 levels, allowing for an average increase of about 25% in emissions per vehicle mile and a decrease in fuel economy by about 15%. This policy shift is intended to support the auto industry by allowing more space for gas-powered cars alongside EVs, while also addressing national security concerns related to reliance on foreign battery materials, particularly from China.