On Friday, President Donald Trump ordered a rollback of incentives and policies that give electric vehicles (EVs) an edge over their gasoline- and diesel-powered counterparts, which may slow the advance of cleaner cars in the US.
To be clear, the US does not have a federal EV mandate; however, President Joe Biden enacted tougher vehicle pollution rules that have made automakers manufacture more electric models.
This order, however, fails to include specific recommendations for modifying emissions standards or gas mileage rules that govern cars. Instead, it explicitly lifts state waiver allowances that cap gas-powered automobile sales, per Yahoo Finance. For example, California's law forces vehicle sales of increasingly zero-emitting vehicles to begin in 2035 and stipulates all the new vehicles sold to the public through the state are to be zero-emitting vehicles. The latest order could further escalate ongoing warfare between California and Trump regarding this state's environmental policies.
Trump also attacks federal funding for EV-related infrastructure, and agencies have been ordered to cease funds distributed through Biden-era legislation, including the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. Those laws committed billions to constructing a national network of EV charging stations. The cessation of such funding could potentially slow efforts to make EV ownership more practical for everyday Americans.
How Trump Presidency Will Impact Demand for EVs
According to Barron's, advisors to Trump as president had pushed for the end of policies aimed at increasing consumer demand for EVs, such as a $7,500 federal tax credit for people who buy new EVs, shocking Musk, founder of Tesla, in the process. Although Congress needs to approve total repeal, there's enough power and precedent for Trump to limit eligibility and modify the rebate program.
That would take time, since there are a few months left, to implement and court challenges would still be likely.
Needless to say, it's assumed that government incentives for clean energy are not being provided this year and further, unless DOGE head, Musk, intervenes with Trump. Experts believe such actions may prove counterproductive for progress in moving toward greener transportation options and dealing with climate change.
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