Summary
- The Biden-Harris administration has supported the electric vehicle industry through landmark laws like the Inflation Reduction Act, while Trump has expressed disdain for battery-powered cars
- Trump cannot unilaterally repeal EV tax credits, rewrite rules explaining the credits, or touch funding for EV charging due to the restrictions in place
- Trump might make his own car emissions rules and attempt to revoke California’s ability to set more stringent EV sales quotas
- While Trump may slow the rate of progress in the EV industry, the industry is still expected to grow over the long run globally
- Lawmakers are realizing the benefits of the EV industry for job creation and competitiveness, which may lead to ongoing support for clean-vehicle policies.
Article
The Biden-Harris administration has been supportive of America’s electric vehicle industry, with landmark legislation such as the Inflation Reduction Act. On the other hand, former President Donald Trump has expressed dislike for battery-powered cars, leading to concerns that a potential second Trump administration could be detrimental to the EV sector. However, it may be challenging for Trump to completely stall the EV transition due to political and economic factors.
While Trump could potentially repeal certain policies on day one of his administration, some programs, like the EV tax credits, would require acts of Congress to be fully repealed. The IRA introduced new credits for used EVs and commercial vehicles, which have sparked an EV leasing boom. Repealing these credits would be a more complex process due to the involvement of federal agencies in explaining and implementing them.
The Infrastructure Investment and Jobs Act set aside funding for building a national fast-charging network, which is essential for widespread EV adoption. This funding, distributed to states annually, is challenging for a president or Congress to stop. Trump may face difficulties in revoking funding or halting infrastructure projects aimed at supporting EVs.
Trump is likely to target emissions rules implemented by Biden’s EPA to push automakers towards selling more hybrids, plug-in hybrids, and EVs. Reversing such rules would take time and could face legal challenges. Additionally, Trump may try to revoke California’s ability to set its own stringent EV sales quotas, although legal challenges could hinder this effort.
While a potential Trump administration may slow down the rate of EV progress in the U.S., industry experts believe that ultimately, the industry will continue to grow globally. Automakers are increasingly focusing on EVs to stay competitive on the world stage, regardless of U.S. policies. The industry experts emphasize the importance of maintaining policies that support EV growth and incentivize the shift towards clean energy vehicles.
It is believed that Republican lawmakers may hesitate to dismantle laws that are creating jobs and fostering competitiveness in the EV industry. Many IRA policies aim to reduce reliance on Chinese EV components and support domestic manufacturing. With significant investments and job creation in Republican districts, there is growing support for EV policies even among Republican members of Congress, indicating a potential shift in attitudes towards electric vehicles.
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