President Trump’s Plans for Electric Vehicles: A Closer Look
The “Green New Deal” brought about by the Biden administration has earned its share of criticism. Unrealistic timelines for EV production, a lack of infrastructure, and loss of consumer freedom are chief among the complaints. These are all problems that President Trump is swiftly addressing in his 2nd term.
Executive Orders: The First Strike Against EV Mandates
President Trump struck an immediate blow to government-forced EV production with an executive order titled “Unleashing American Energy”.
Simply put, President Trump is rolling back Biden’s promise to make at least 50% of new vehicle sales electric by 2030. Though it does not seem that Biden’s administration had the power to enforce this in the first place—it speaks directly to President Trump’s position.
A Limited Focus on Electric Vehicles
Trump’s administration does not explicitly prioritize electric vehicles or green technology. Instead, his policies are rooted in consumer freedom, bolstering the American energy industry, and reducing regulatory burdens on traditional automakers.
Unlike his predecessor, Joe Biden, who introduced significant incentives and standards to encourage EV adoption, President Trump’s approach is more hands-off regarding the industry’s electrification efforts.
In addition to the executive order mentioned above, President Trump intends to remove EV tax credits, while also halting billions of dollars in federal spending on EV infrastructure. He believes (as do we) that the United States is massively underutilizing readily available energy resources—something he intends to change.
Rolling Back Fuel Economy Standards
One of the clearest indicators of President Trump’s stance on EVs is his administration’s plan to rollback of fuel economy and emissions standards. The Biden-era fuel efficiency standards were designed to push automakers toward more fuel-efficient and zero-emission vehicles—regardless of what consumers wanted.
President Trump aims to replace these with more open-ended emissions policies, which may significantly reduce the rate of annual fuel efficiency improvements required for new vehicles.
This rollback will effectively slow the urgency for automakers to transition to EVs, as they could meet the new standards using improved internal combustion engines rather than investing heavily in electrification.
It’s worth noting that many automakers have already invested billions into EV development, so it’s unlikely we’ll see them abandon EVs completely.
Opposition to Renewable Energy and “Green” Incentives
Trump frequently expresses skepticism about renewable energy initiatives, which indirectly impact the EV market. His administration’s support for fossil fuels and criticism of wind and solar energy signal a more realistic look at the future of energy production.
This skepticism extended to infrastructure investments for EVs, such as charging stations, which received little to no federal support during his presidency.
Additionally, President Trump eliminating the federal EV tax credit would create uncertainty for automakers and consumers, potentially discouraging some from investing in electric vehicles.
Trade Policy and Supply Chain Challenges
Trump’s trade policies, particularly his tariffs on Chinese imports, will have a mixed impact on the EV industry. On one hand, the tariffs raised costs for automakers importing components such as lithium-ion batteries, a key component of EV production.
On the other hand, Trump’s focus on reshoring manufacturing aligned with longer-term goals of creating domestic EV supply chains. While there were no major federal initiatives to support EV manufacturing, the trade policies indirectly emphasized the need for U.S.-based production.
Automaker Responses to Trump’s Policies
While Trump’s administration did not actively promote EVs, many automakers continued to invest heavily in electrification during his presidency. Companies like Tesla, Ford, General Motors, and startups such as Rivian maintained their commitment to EVs, driven by global demand and the need to remain competitive in international markets.
Interestingly, some automakers took a stand against Trump’s policies. For example, Ford and Honda sided with California when the state resisted the SAFE Vehicles Rule and maintained stricter emissions standards. This rift highlighted the divide between federal policies and industry trends during the Trump era.
The Growing Resistance to Electric Vehicles
Critics argue that Trump’s limited engagement with the EV sector represented a missed opportunity to position the U.S. as a global leader in electrification. As other countries, such as China and members of the European Union, invested heavily in EV infrastructure, manufacturing, and incentives, they argue that the U.S. risks falling behind in the global EV race.
However, Trump’s policies also fueled support from states, private companies, and individual consumers who are skeptical or even opposed to forced EV adoption. This highlighted the growing resistance to EV mandates despite pressure from Democratic politicians.
Conclusion: The Electric Future Under President Trump
President Trump’s plans for electric vehicles are, at best, minimal. His administration is focused on supporting traditional energy sources and encouraging a free market rather than directly mandating EV adoption.
While these policies will create challenges for the EV industry, the long-term growth of the EV segment is still likely. However, any growth in the EV market will more accurately reflect the needs of the American people, as opposed to government mandates.
As concerns over unrealistic EV mandates grow, Trump’s second term as President will almost certainly serve as a beacon of rational expectations.
