How Trump's presidency will impact EV sector and automakers
The automotive industry is bracing for major changes under President-elect Donald Trump. Industry insiders expect new tariffs on vehicles imported from Mexico, China, and perhaps other countries. There's also expectation of a rollback on existing pro-electric vehicle (EV) policies. Trump has said he plans to start revoking Environmental Protection Agency and Transportation Department vehicle regulations on his first day in office sometime in January 2025.
Potential impact on EV tax breaks and incentives
The expected regulatory changes could give carmakers more leeway to produce more profitable gas-powered SUVs and trucks. However, they also raise questions about the fate of billions of dollars poured into EV battery production and manufacturing. Trump is reportedly mulling cutting or eliminating EV tax breaks and other incentives, which could have a major impact on the electric vehicle market.
Industry associations respond to anticipated changes
In anticipation of the changes, the Zero Emission Transportation Association (ZETA), which includes Rivian, Tesla, Lucid Motors, and battery maker LG Energy Solution, has said that it is ready to work with Trump. ZETA stressed that "the next four years are critical to ensuring that these technologies are developed and deployed by American workers in American factories for generations." The statement underscores the industry's commitment to electric vehicle technology despite possible policy shifts.
Plans for vehicle emissions and EV charging grants
Trump also plans to revoke California's power to set its own vehicle emissions standards, an action he took in 2019. The American Trucking Associations has called on Trump to substitute the EPA's stricter tailpipe emissions with national standards that are "technologically achievable and account for the operational realities of our essential industry." Further, decisions on how to spend billions of dollars in EV charging grants will be made under him.
Trump's stance on foreign auto imports and manufacturing
Trump has long threatened to impose tariffs of 200% or more on cars imported from Mexico, and may expand these tariffs to Asian and European cars. Despite opposing Chinese auto imports, he is amenable to Chinese automakers setting up production in the US. "We're going to give incentives, and if China and other countries want to come here and sell the cars, they're going to build plants here, and they're going to hire our workers," Trump told Reuters in August.
