The incoming administration of President Donald Trump is preparing to implement significant changes to the US electric vehicle (EV) and emissions policies, reports Reuters.
The change will involve halting support for electric vehicles (EVs) and imposing tariffs on battery materials to challenge China’s dominance in the industry.
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This move represents a clear shift from the current Biden administration’s approach to EV transition and emissions policies.
The transition team’s recommendations include cutting off federal support for EVs and charging stations, strengthening measures to prevent automotive imports from China, and imposing global tariffs on battery materials, the report said.
These proposals aim to redirect funds towards national defence and securing a China-free battery supply chain.
The team also suggests negotiating tariff exemptions with allied countries to bolster US production.
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By GlobalDataThe recommendations mark a stark contrast to the Biden administration’s policies, which have aimed to encourage a domestic battery supply chain and a rapid transition to EVs.
The Trump team’s plan would reallocate money from building charging stations and making EVs affordable to national defence priorities.
The transition team, tasked with implementing new automotive policies, also aims to eliminate the current $7,500 tax credit for consumer EV purchases.
This policy shift could impact US EV sales and production, affecting automakers like General Motors and Hyundai, which have expanded their electric offerings in the US market.
It could also influence sales of Tesla, although Elon Musk has indicated that his company might be less affected by the loss of subsidies.
Furthermore, the team proposes reallocating funds from Biden’s $7.5bn charging station plan to battery-minerals processing and critical national defence supply chains.
The Defence department has previously highlighted US vulnerabilities due to China’s control over the mining and refining of critical minerals necessary for batteries and military technologies.
Trump transition spokeswoman Karoline Leavitt stated: “When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars and electric vehicles.”
