Trump wants to ban authorities and the military from buying electric cars

Donald Trump’s team is working on a fundamental realignment of car policy. The plans include eliminating subsidies for electric vehicles and relaxing environmental regulations. Government authorities and the military should also no longer buy electric vehicles.

Radical change of course in US auto policy

Donald Trump’s transition team is preparing far-reaching changes for the US automotive industry. The plan calls for cutting the subsidies for electric vehicles introduced by the current administration of Joe Biden. The central elements are the elimination of the $7,500 tax credit for electric car buyers and the withdrawal of funds for the expansion of the charging infrastructure.

The concept follows a two-pronged approach: on the one hand, consumer subsidies for electric cars should be eliminated, and on the other hand, there are plans to strengthen domestic battery production. Global import tariffs on batteries, raw materials and charging components are planned for this purpose. According to information from Reuters Individual countries should later be given the opportunity to negotiate exceptions.

The plans also provide for a significant reduction in environmental regulations. Emissions standards are set to be reset to 2019 levels, which would allow about 25 percent higher vehicle emissions. They also want to deprive California of the opportunity to enact its own, stricter emissions regulations – a right that the state has had since 1970 and that has so far been adopted by 18 other states. However, California has been combative since Trump’s election victory and wants to challenge and fight the future president’s plans wherever it can.

Consequences for the industry

The planned measures could have far-reaching consequences for the US automobile industry. Traditional car manufacturers such as General Motors and Hyundai, which are currently expanding their range of electric cars, would have to rethink their strategies.

Tesla could also be affected, although CEO Elon Musk, who serves as an adviser to Trump, has said that eliminating subsidies would hit its competitors harder. But it is questionable whether the Tesla boss will actually be happy with this part of Trump’s policy.

As mentioned, federal authorities and military facilities should also stop the program initiated by Biden to replace combustion engines. Because currently government institutions have to buy more electric vehicles when purchasing new cars; all (light) vehicles should be fully electric from 2027. This requirement should fall under Trump.