Summary
- Trump transition team looking to slash support for electric vehicles and charging programs set up by Biden administration
- Plans to ease regulations on fossil fuel industry and cut EV programs, including $7,500 tax credit
- Transition team recommending tariffs on battery materials worldwide to bolster domestic supply chain
- Efforts to shift funding towards national defense initiatives, and away from EV subsidies and charging station buildout
- Trump administration considering ending mandatory reporting measure for automated driving systems, and creating federal rules for self-driving vehicles deployment
Article
The transition team for President-elect Donald Trump is reportedly looking to slash support for electric vehicle (EV) and charging programs set up by the Biden administration, in addition to easing regulations on fossil fuel emissions. Plans include cutting the $7,500 EV tax credit and imposing tariffs on battery material imports worldwide to bolster the domestic supply chain for battery materials. The team aims to support both gas-powered cars and electric vehicles once Trump takes office, emphasizing the importance of national defense efforts in securing battery supplies without relying on China.
Efforts to roll back EV programs and funding passed under Biden, including the $7.5 billion plan to aid in the buildout of charging stations, are in the works. The transition team plans to redirect funding toward national defense initiatives, such as securing battery materials and critical infrastructure. This includes utilizing Section 232 tariffs to limit imports related to potential national security threats. Proposed measures also include waiving environmental reviews to accelerate federally funded EV infrastructure projects and ending federal requirements for electrifying government fleets.
Ditching the $7,500 EV tax credit and other policies to support EV adoption could potentially benefit Tesla by enabling the company to further fend off competition from Detroit. CEO Elon Musk has called for the end of all government subsidies, including those for EVs, oil, and gas. Musk, who campaigned with Trump during the election, is expected to play a major role in the upcoming administration. The Trump transition team is also considering removing a mandatory reporting measure for automated driving systems and creating federal rules to accelerate the deployment of self-driving technologies.
The potential effects of Trump’s presidency on the U.S. auto sector are being analyzed by industry analysts. The plans for EV program cuts, global tariffs, and other measures outlined by the transition team have raised concerns and discussions within the industry. The focus on supporting both gas-powered cars and electric vehicles, while emphasizing national defense efforts in securing battery supplies, indicates a shift in priorities and policies under the incoming administration. It remains to be seen how these proposed changes will impact the EV market and the automotive industry as a whole.
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