By GB News (World News) | Created at 2024-12-16 14:59:26 | Updated at 2024-12-16 19:02:49
4 hours ago
Donald Trump’s administration is set to make sweeping changes to US electric vehicle policies, with plans to dismantle key elements of President Joe Biden's emission reduction strategy.
The proposals, revealed in documents seen by Reuters, would cut off support for electric vehicles and charging stations while strengthening measures to block Chinese cars, components and battery materials.
The dramatic shift in policy comes as America's electric vehicle transition faces headwinds and China's heavily subsidised EV industry continues to grow.
Trump had previously vowed on the campaign trail to ease regulations on fossil-fuel cars and roll back what he termed Biden's "EV mandate".
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Donald Trump has slammed electric vehicles and their impacts
GETTY/ GB News
Under the proposals, the Trump team plans to eliminate Biden's $7,500 (£5,500) tax credit for consumer EV purchases.The transition team also aims to claw back remaining funds from Biden's $7.5billion(£5.9billion) charging station initiative.
This money would instead be redirected towards battery-minerals processing and what the document describes as the "national defense supply chain and critical infrastructure".
The changes could significantly impact US EV sales and production, affecting major manufacturers like General Motors and Hyundai who have recently expanded their electric vehicle offerings.
Tesla, currently the dominant US EV seller, could also face challenges, though its CEO Elon Musk has suggested competitors would be hurt more by losing subsidies.
The transition team recommends imposing global tariffs on battery materials to boost domestic US production.The plan suggests negotiating individual exemptions with allied nations after implementing these broad tariffs.
The proposals mark a stark departure from Biden's approach, which attempted to balance encouraging domestic battery supply chains with rapid EV adoption.
The Defense Department has previously highlighted strategic vulnerabilities due to China's dominance in mining and refining critical minerals, including graphite and lithium needed for batteries.
A 2021 Government report emphasised that "assured sources of critical minerals and materials" are "critical to US national security".
Electric vehicle owners must adhere to strict emission rules in the US
PA
Trump's transition team spokeswoman Karoline Leavitt defended the proposals, stating that voters had given Trump a mandate to deliver on campaign promises.
"When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars and electric vehicles," Leavitt said in a statement.
