Summary
- The Biden-Harris administration has supported the electric vehicle industry with landmark laws like the Inflation Reduction Act
- Former President Donald Trump has shown disdain for battery-powered cars, but stalling the EV transition may be harder than he expects
- Trump cannot unilaterally repeal EV tax credits as it would require an act of Congress
- Trump may target tailpipe emissions rules finalized by Biden’s EPA, but any changes would take time and face legal challenges
- The impact of Trump’s potential actions on the EV industry and U.S. policies may slow progress but is unlikely to derail EV momentum, with industry growth continuing over the long run.
Article
The Biden-Harris administration has been supportive of the electric vehicle industry in America through landmark laws such as the Inflation Reduction Act. On the other hand, former President Donald Trump has expressed disdain for battery-powered cars, leading some EV proponents to fear the impact of a potential second Trump administration. However, the reality is that the EV transition may be more resistant to derailment than anticipated, as significant investments have been made in the industry across various districts.
Trump may face challenges in unilaterally repealing EV tax credits, as the process would require congressional approval. Efforts to rewrite the rules explaining the credits could potentially impact their accessibility, but legal experts suggest that there may not be much room for interpretation in the legislation’s intent. Additionally, any attempts to repeal the IRA’s credits and regulations would need to go through notice-and-comment periods, making it a lengthy process that could face pushback from Congress.
While Trump may try to make changes to car emissions rules and set his own regulations, these efforts would likely take time and face legal hurdles. The impact on the EV industry could result in a slowing of progress rather than a complete derailment, as the momentum for EV growth remains strong globally. Companies in the industry are motivated to stay competitive, especially with emerging firms from China, which have been driving the global EV market share.
Despite the potential challenges, there is a growing understanding among Republican lawmakers about the benefits of the EV industry in creating jobs and keeping America competitive globally. Investments in clean energy projects have been significant in Republican districts, further solidifying the importance of maintaining policies that support the EV sector. Opinions among lawmakers, including Republicans, have started to shift in favor of EVs, indicating a possible bipartisan support for clean-vehicle policies in the future.
The auto industry is likely to lobby strongly for the continuation of incentives and support for the EV sector to stay competitive and avoid falling behind in the technological transformation. Traditional players in the industry are still working to achieve greater economies of scale with their EV investments, and failing to do so could result in losing ground in the evolving market. Therefore, the industry is expected to continue pushing for policies that enable them to remain competitive and contribute to the growth of the EV sector in the U.S.
Read the full article here
