President Donald Trump has taken aim at the United States’ burgeoning electric vehicle (EV) sector, rolling back several initiatives championed by his predecessor, Joe Biden. This marks a decisive shift in US policy, potentially slowing the adoption of EVs and reshaping the country’s approach to clean energy and emissions regulation.
Repealing Biden’s 2030 EV sales target
Trump’s executive order rescinded a 2021 directive from Biden, which aimed to ensure that half of all new vehicles sold in the US by 2030 were electric. Although Biden’s target was not legally binding, it had garnered broad support from both domestic and international automakers eager to align with global trends in automotive innovation. Trump’s action signals a clear pivot toward traditional internal combustion engines (ICE), framing federal support for EVs as a “market distortion.”
Halting funding for charging infrastructure
In a move likely to hinder the expansion of EV infrastructure, Trump ordered the suspension of unspent funds from a $5 billion programme earmarked for vehicle charging stations. This funding had been a cornerstone of Biden’s strategy to address one of the key barriers to EV adoption — range anxiety — by ensuring a comprehensive national charging network.
Challenging state-level emissions waivers
Trump’s directive also seeks to revoke the Environmental Protection Agency’s (EPA) waiver allowing California and 11 other states to adopt zero-emission vehicle rules and ban the sale of gasoline-only cars by 2035. By targeting these waivers, Trump is attempting to curb state-level autonomy in setting stricter emissions standards, which have often been a driving force for national policy shifts.
Revisiting emissions and efficiency standards
The order mandates the EPA to reconsider rules that require automakers to meet stringent emissions targets, which would necessitate EVs making up 30% to 56% of sales by 2032. This review could significantly ease regulatory pressures on automakers, allowing greater flexibility in the production of ICE vehicles.
Potential elimination of EV subsidies
While the $7,500 federal tax credit for EV purchases is legislated and would require Congressional approval to repeal, Trump has signalled his intent to explore its removal as part of broader tax reform. This move would further reduce incentives for consumers to switch to electric models, impacting market dynamics and potentially slowing EV adoption rates.
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By GlobalData
A broader energy agenda
Trump’s policy shifts are consistent with his broader vision for energy independence and fossil fuel dominance. In his inauguration address, he emphasised plans to boost oil and gas production, expand drilling operations, and prioritise the replenishment of the Strategic Petroleum Reserve. Trump’s rhetoric underscores a commitment to “drill, baby, drill” while downplaying the role of renewable energy sources like wind, solar, and hydrogen.
Implications for automakers and climate goals
Trump’s rollback of EV-friendly policies raises significant questions about the future of the U.S. automotive industry and the country’s ability to meet climate commitments. Automakers, many of whom have already invested heavily in EV development, may face regulatory uncertainty and shifting market conditions. The US’s withdrawal from the Paris Agreement during Trump’s previous term further underscores his administration’s lack of alignment with global efforts to combat climate change.
Trade and economic considerations
Trump’s energy and trade policies are set to intersect with the creation of the External Revenue Service, tasked with collecting tariffs and duties. This could have ramifications for international trade relations, particularly with countries heavily invested in EV technology and renewable energy.
Trump’s executive actions represent a stark departure from Biden’s climate-focused agenda, signalling a renewed emphasis on fossil fuels and traditional automotive technologies. While these moves may resonate with segments of the electorate prioritising energy independence and economic growth, they pose challenges for the nation’s transition to sustainable energy and its role in global climate leadership.