For a while now, we’ve been hearing that President-Elect Trump planned to do away with the federal EV tax credits and loosen emissions standards. While those moves are widely expected, there had been no solid reporting on the plans, until now. Reuters recently reported on a document outlining the Trump transition team’s plans, which include shutting down EV tax credits and tighter restrictions on Chinese imports.
The transition teams document outlined a shift in regulations on gas vehicles, which Trump promised to do on the campaign trail. He also vowed to get rid of Biden’s “EV mandate,” though one does not currently exist. The team wants to impose tariffs on global battery materials, hoping to bolster U.S. battery production, with a plan to negotiate tariff exceptions later on.
The money saved from stopping tax credits would be used to build more charging stations and supporting domestic supply chain development. Incoming “First Buddy” Elon Musk supports doing away with the credits despite the fact that he’s the CEO of Tesla, a company that benefits from the incentives. He believes that nixing the tax credits would hurt other automakers more than Tesla, leaving it in a better competitive position when the dust settles.
Trump’s transition team also proposed blocking California from setting its own emissions standards. As the country’s most populous state, California’s standards tend to trickle down to other states, but its plans to tighten emissions standards further in 2026 have not yet been approved.
[Images: Dodge, Kia, Hyundai]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
Source: The Truth About Cars
