The Trump administration’s transition team is rapidly developing plans to reshape America’s electric vehicle (EV) market strategy. The proposals, outlined in an internal document, aim to align with the president-elect’s campaign promises on EV adoption and fuel economy standards.
Key recommendations include imposing tariffs on global battery materials, with negotiated exemptions for allies, to boost US production. This would involve securing critical minerals and materials without relying on China. Additionally, funds from Biden’s $7.5 billion plan to build charging infrastructure may be redirected to bolster national-defense priorities.
The plans also suggest rolling back fuel economy and emissions standards to 2019 levels, which could lead to a 25% increase in emissions per vehicle-mile compared to the current 2025 policy. Furthermore, California’s ability to set its own emissions standards would be blocked, revisiting Trump’s previous decision to disallow state regulations.
Critically, the document proposes eliminating the $7,500 tax credit currently available for qualifying EV purchases, which could significantly impact affordability and sales, particularly among legacy automakers and pure-EV companies like Tesla. The automotive industry is poised to undergo significant changes come January 20, with its global implications set to be closely watched by consumers and industry stakeholders.
Source: https://www.roadandtrack.com/news/a63204178/report-says-trump-administration-plains-to-change-ev-policy