The incoming Trump administration appears poised to implement sweeping changes that could significantly hinder the growth of electric vehicle (EV) adoption in the United States. According to documents reviewed by Reuters, the transition team is preparing to abolish subsidies, impose global tariffs on EV battery materials, and roll back environmental regulations, signaling a pivot toward policies favoring traditional fossil fuel vehicles.
Subsidy Cuts and Infrastructure Setbacks
One of the most significant changes involves the $7,500 clean vehicle tax credit, which has been a cornerstone of federal efforts to make EVs more accessible to consumers. The Trump team plans to eliminate this incentive entirely, removing a key driver of EV affordability in the U.S.
In addition, the administration is targeting the $7.5 billion allocated by the Inflation Reduction Act (IRA) for EV charging infrastructure. These funds, currently managed through state-level programs, have already faced delays due to lengthy approval processes. The Trump administration aims to claw back these unspent funds, potentially leaving numerous planned charging stations incomplete. Ironically, the administration is also considering removing environmental review requirements to expedite charger deployment—a move that could streamline projects but raises concerns about oversight.
Rolling Back Environmental Regulations
In a reversal of current policies, the incoming administration intends to scale back fuel efficiency standards to levels last seen in 2019. This rollback would allow vehicles to emit approximately 25% more pollutants than current regulations permit. Under President Joe Biden, the Environmental Protection Agency (EPA) had worked to cut emissions by 56% by 2032, aiming for 50% of new vehicles sold to be electrified.
California’s Zero Emissions Vehicle (ZEV) program, which influences emissions standards in 17 other states, may face renewed challenges. The Trump administration is expected to mount a sustained legal battle against California’s authority to set its own emissions standards, jeopardizing the progress made in these states to transition to cleaner transportation.
Tariffs and Trade Barriers
Trade policy under the Trump administration will also shift, with tariffs set to become a tool to block EV imports. Unlike the current administration, which implemented tariffs on Chinese-made EVs to protect U.S. industries from state-supported competition, the Trump team plans to justify its tariffs on national security grounds.
Moreover, global tariffs on battery materials are expected to increase EV production costs significantly. While countries may negotiate exemptions, the broad application of these tariffs could strain international trade relations and further hinder EV affordability.
Military and Government Fleet to Shift Back to Gasoline
The federal government’s light vehicle fleet, currently on track to be fully zero-emission by 2027, will also see a policy reversal. Under Trump, the requirement for federal agencies and the Department of Defense to prioritize EVs will be scrapped, potentially leading to a return to gas-powered vehicle procurement.
Weakened Oversight of Automated Vehicles
In another controversial move, the administration plans to eliminate existing regulations requiring automakers to report crashes involving partially automated systems like Tesla’s Autopilot. These rules have provided vital data on safety risks and accountability, with Tesla alone reporting over 1,500 crashes involving injuries and fatalities. Their removal could lead to reduced transparency and oversight in the autonomous vehicle sector.
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