Cover Image for Five Ways That Trump's New Policies Will Impact Electric Vehicles in the United States.
Wed Jan 22 2025

Five Ways That Trump's New Policies Will Impact Electric Vehicles in the United States.

The president is busy signing executive orders that could harm electric vehicles.

Since his arrival at the White House, President Donald Trump has expressed his intentions to reverse the electric vehicle (EV) policies established by the Biden administration. During a speech to a crowd in Washington, D.C., Trump announced the revocation of "80 destructive and radical executive actions" of his predecessor, emphasizing that "the United States will not sabotage our own industries while China pollutes without consequence."

Among the measures expected to negatively impact the adoption of electric vehicles in the country, Trump has indicated the removal of "unfair subsidies and other market distortions imposed by the government that favor EVs over other technologies." This position implies a possible reduction or elimination of federal tax credits for the purchase of electric vehicles. The loosening of regulations on emissions from internal combustion vehicles and the push for new oil drilling projects suggest that gasoline-powered vehicles will continue to be more affordable options in the immediate future.

Furthermore, the expansion of charging infrastructure for electric vehicles will be affected. Funding allocations for charging stations, through programs like the National Electric Vehicle Infrastructure Formula Program, will be paused while the administration reviews its processes and policies. This could lead to a stagnation in the implementation of new public charging stations and leave the responsibility for charging infrastructure to individual electric vehicle owners.

In the commercial realm, the Biden administration had already imposed high tariffs on electric vehicles manufactured in China, thereby limiting affordable options for American consumers. Although it is unclear whether these policies will be maintained under Trump, he has already threatened to impose a 25% tariff on vehicles coming from Mexico and Canada, two key regions in the manufacturing and export of electric vehicles. This tariff could severely affect the Canadian automotive industry, where a large majority of vehicles and parts are exported to the United States.

Trump has also declared a "national energy emergency," leading his administration to suspend offshore wind energy leasing in certain areas, citing concerns about marine life. This decision could further hinder electric vehicle owners' ability to charge their cars using renewable energy sources, thereby limiting the environmental benefits associated with owning these vehicles.

In summary, the actions of the new president are aimed at slowing the adoption of electric vehicles and decreasing investment and innovation related to this technology, leaving traditional automakers in a pursuit of quick profits, which may result in a delay in the adoption of clean energy in the face of competition, particularly from Chinese companies that have made significant advancements in this market.