Returning to office on Monday, President Donald Trump wasted no time in opposing electric vehicles, one of his most frequent targets on the campaign trail, and the Biden administration’s policies that helped propel them forward. .
But getting it all back together will require more than just paperwork.
One of President Trump’s many executive orders, titled “Unlocking America’s Energy,” is intended to “promote true consumer choice essential to economic growth and innovation,” which the president mistakenly said was ” It has pledged to abolish what it calls the “electric vehicle (EV) mandate.” The order also states that the Trump administration will consider eliminating what he calls “unfair subsidies and other government-imposed market distortions that favor EVs over other technologies.” are.
But the word “consider” may be doing some heavy lifting in President Trump’s order.
As industry experts, analysts, and media outlets such as the Detroit Free Press have pointed out, a complete repeal of the Inflation Control Act and its EV tax credit would require a vote of Congress. Repealing the U.S. Environmental Protection Agency’s emissions regulations that encourage further growth in electric vehicles, hybrids, and plug-in hybrids would also require a lengthy reform process that includes public hearings and other rulemaking processes.
President Trump also announced that federal agencies “Please stop disbursing funds immediately… This includes, but is not limited to, funding for electric vehicle charging stations available through the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program. Directly targeting funding for fast charging. -The booming charging industry, including Tesla, which has been one of the biggest beneficiaries of this program so far. Much of that money had already been allocated to states, thanks in part. quick movements The final days of the Biden administration’s term.
Trump, on the other hand, could face Opposition from elected officials within his own party He represents a state in the U.S. that is investing heavily in EV manufacturing. for example, Hyundai’s new metaplant in Georgia This is the largest economic development project in the state’s history. Other beneficiaries of new EV and hybrid investments include North Carolina, South Carolina, Tennessee and Kentucky. This may be why the government has said it will simply “consider” ending certain pro-EV subsidies.
President Trump’s use of the word “mandate” This has historically referred to EPA rules that require automakers to drastically reduce greenhouse gas emissions in new cars starting in 2027, and regulations are so strict that they will eventually become zero-emissions vehicles. It is necessary to manufacture cars. Accounts for approximately 30-50% of new car sales. Contrary to popular opinion, the term “mission” had a major impact on the trajectory of the campaign.—There was no mandate forcing people to buy EVs. Biden had set non-binding goals. By 2030, 50% of all new car sales will be fully electric.
However, strict fuel efficiency regulations are pushing domestic and foreign automakers, including in North America, to manufacture and sell more EVs and batteries, which is the only way to qualify for tax credits. In 2024, 8% of new car sales will be fully electric, a record high. Although the growth rate of electric vehicles has slowed in recent years and has not matched automakers’ initial optimistic expectations, EVs remain the fastest-growing new vehicle segment. Last year, Hyundai Motors and General Motors became the first automakers since Tesla to sell more than 100,000 EVs in a year in the U.S., and Ford came close.
But EV advocates, environmental groups, and even some automakers argue that rolling back Biden-era emissions and fuel economy standards would mean the U.S. auto industry would be better served by foreign countries investing heavily in electrification. They argue that there is a risk of falling behind competitors. In fact, about half of the new cars sold in Europe last year were hybrids, plug-in hybrids, or electric vehicles, and in China, 50% of new car sales this year are expected to be EVs. If U.S. automakers and related companies ease their EV plans (to which they have already allocated $200 billion), they risk being left behind by the rest of the world.
As The Wall Street Journal noted today, many of President Trump’s executive orders are likely to face legal challenges in the coming weeks and months. Today’s order does not include specific policy measures regarding emissions controls, EV tax credits, manufacturing incentives, etc.
Perhaps more importantly for the auto industry, today’s executive order avoids any mention of tariffs that would almost certainly increase new car prices. President Trump on Monday said he would impose threatened tariffs on foreign goods (including cars) from Mexico, Canada and China on February 1 rather than “on day one,” a departure from key promises he had already made during the campaign. is moving away.
Contact the author: patrick.george@insideevs.com
