As President-elect Donald Trump prepares for his administration, his transition team is pushing for sweeping changes to the electric vehicle (EV) sector, aiming to rollback many of the Biden administration’s policies. A document obtained by Reuters outlines recommendations to curb government support for EVs and charging stations, while also strengthening measures to block Chinese-made cars, battery components, and materials.
The proposed changes come amid a slowdown in the US electric-vehicle transition, while China’s heavily subsidized EV industry continues to thrive due to its superior battery supply chain. Donald Trump, during his campaign, promised to ease regulations on fossil-fuel vehicles and eliminate what he termed President Joe Biden’s “EV mandate.” The transition team’s recommendations reflect this approach, including eliminating Biden’s $7,500 tax credit for consumers purchasing EVs.
The plan would also shift funding from EV infrastructure, such as charging stations, into national defense priorities, with a focus on securing US supply chains free from Chinese influence. This includes measures like imposing tariffs on global battery materials to encourage domestic production and negotiating exemptions with allied countries. The team recommends using Section 232 tariffs, which are typically applied to national security threats, to restrict imports of EV components like batteries and critical minerals.
Another significant proposal includes scaling back the Biden administration’s emissions and fuel-economy standards, which would allow automakers to produce more gas-powered vehicles by reverting to 2019 levels. These changes could result in an increase in tailpipe pollution by approximately 25% per vehicle mile and reduce average fuel economy by about 15% compared to current 2025 limits. The transition team also seeks to prevent California from implementing stricter emissions standards, which were allowed under the Biden administration but previously blocked during Donald Trump’s first term.
The Donald Trump transition team also proposes measures to bolster domestic battery production, largely for defense-related purposes, and aims to protect US automakers. These proposals include waiving environmental reviews to fast-track federally funded EV infrastructure projects, expanding export restrictions on EV battery technology to adversarial nations, and using tariffs as leverage to open foreign markets to US-made EVs.
While these changes would certainly impact the EV sector, Donald Trump’s transition spokesperson Karoline Leavitt emphasized that the incoming president would support both gas-powered and electric vehicles, aligning with the mandates set during his campaign. The full implementation of these policies could significantly reshape the US automotive landscape, especially as the country seeks to balance energy and environmental priorities.
