President Trump takes aim at Biden's ambitious electric vehicle goals, revoking the target for 50% EV sales by 2030 and seeking to eliminate subsidies and incentives. His actions could impact the EV industry, job creation, and climate policy.
A Powering Michigan display about electric vehicles and charging was shown at the 2025 Detroit Auto Show on Jan. 10. In the summer of 2021, before an array of union-made electric vehicles parked by the White House, then-President Joe Biden announced that he was setting an ambitious target: By the year 2030, 50% of new vehicles sold in the U.S. would be battery-powered. One of Trump's first acts in office was to revoke Biden's 50% EV target.
Trump identified his target as the 'electric vehicle mandate.' The federal government does not directly require that electric vehicles be sold — but Republicans have argued that regulations to cut vehicle emissions do not affect the availability of EV tax credits; to change those will require an act of Congress. But both the House and Senate are controlled by Republicans, and they're eager to find ways to save money to balance out the other kinds of tax cuts that Trump has promised. Eliminating EV incentives could help that cause. In the summer of 2021, before an array of union-made electric vehicles parked by the White House, then-President Joe Biden announced that he was setting an ambitious target: By the year 2030, 50% of new vehicles sold in the U.S. would be battery-powered. Now President Donald Trump is trying to, well, turn back. 'We will revoke the electric vehicle mandate, saving our auto industry and keeping my sacred pledge to our great American auto workers,' he said in his inaugural address. 'In other words, you'll be able to buy the car of your choice.' That target was never enforceable on its own; it served as a signpost for other policies that would have more tangible effects. Likewise, Trump removing the target doesn't change anything now. Consumer tax credits are still available; state mandates and federal emissions rules are still in place. That's because an executive action, on its own, can't undo or overwrite laws. Trump identified his target as the 'electric vehicle mandate.' The federal government does not directly require that electric vehicles be sold — but Republicans have argued that regulations to cut vehicle emissions serve as mandates because automakers would face high costs if they did not sell more EVs. Part of Trump's roadmap ahead is to revise rules, particularly emissions standards set by the Environmental Protection Agency, but also fuel economy requirements from the National Highway Traffic Safety Administration. All push companies to build more EVs than they would otherwise. But before any regulations can change, an agency has to propose adjustments. Then, there are mandatory public comment periods, and the agencies are supposed to incorporate the feedback into any changes. That means it will take a few months at least. But Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility, says she thinks it'll be much faster than during the first Trump administration, when it took more than two years to 'Part of the reason that it can happen faster is simply that the Trump administration's team knows more than they did last time,' she says. The Trump administration has also lambasted subsidies and incentives, like federal tax cuts, that encourage sales and domestic production of EVs, calling them market distortions. do not affect the availability of EV tax credits; to change those will require an act of Congress. But both the House and Senate are controlled by Republicans, and they're eager to find ways to save money to balance out the other kinds of tax cuts that Trump has promised. Eliminating EV incentives could help that cause. That summary makes it sound like reducing EV funding will be easy. That might not be true, because Trump and Republican lawmakers are The Biden administration always sought to tie climate action to U.S. jobs, in part to build a more enduring coalition to support clean energy. Now that strategy will be put to the test, as conservative lawmakers weigh their distaste for the tax credits against the local jobs they've helped create. For example, last week, Rep. John James of Michigan — a Republican and a vocal critic of Biden's EV policies — celebrated the end of 'EV mandates', But he proceeded to ask that the House of Representatives 'proceed with caution' when it came to rolling back manufacturing and energy tax credits, noting that job creators in his district and around the country are relying on them. James repeated a line many Republican lawmakers have used in reference to the Inflation Reduction Act, the Biden administration's capstone climate legislation, calling for a 'scalpel', instead of a sledgehammer or chainsaw, to dismantle it. Some of Trump's first-day executive orders do have material impacts on the EV industry. He froze the disbursement of funds that were set aside to build new EV chargers, for instance. projects once he was in office, which was why the Biden administration was motivated to get money out the door near the end of his term
ELECTRIC VEHICLES ENVIRONMENT POLICY ECONOMY SUBSIDIES
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